5-year Extension for National Flood Insurance Program

The National Flood Insurance Program (NFIP) has been reauthorized for five years as part of the Surface Transportation Bill signed by the President on July 6, 2012. Until this point, the NFIP has been kept going by stopgap extensions since 2008. One lapse back in June of 2010 stalled more than 40,000 home sales! There are 21,000 communities in the United States where flood insurance is REQUIRED for a mortgage, so this five year extension will bring about some much needed certainty to real estate transactions.

Besides being extended for five years, here is the bottom line on the impact the program has:

  • Ensure that the NFIP is there so that homeowners don’t have to worry about the nonexistence of private market flood insurance
  • Increase confidence in half-a-million real estate transactions in those 21,000 communities  where flood insurance is a requirement for federal loans
  • Avoiding further lawsuits and settle long-standing disputes by establishing a formula for NFIP and wind insurers to pay where property damage cannot be attributed to wind or water
  • Eliminate subsidized insurance rates on properties with repeated flood loss and claims
  • Raise $3 billion in revenue to pay down the loan for the record-shattering 2005 storm season
  • Improve accuracy of floodplain maps by having a council of experts review and reset standards
  • Reimburse homeowner’s appeal expense when successfully challenging a flood map

Have more questions about flood insurance or flood maps? Contact me, I can help find something that will work for you!