FLOOD INSURANCE EXTENSION....DOES NOT INCLUDE HURRICANE PROTECTION
As reportedÂ last week byÂ Florida Realtors, the National Flood Insurance Program (NFIP) has been extended for a one year term.
WASHINGTON â€“ Sept. 24, 2010 â€“ The U.S. House passed a Senate bill last night that extends the National Flood Insurance Program (NFIP) for one year past its current expiration date, Sept. 30. The bill still needs President Obamaâ€™s signature to become law, but thatâ€™s expected.
When NFIP shuts down, current homeowners cannot renew a policy and homebuyers cannot secure a policy, which can postpone closings of flood-zone homes that require a mortgage. NFIP has already shut down eight times in the past two years as Congressional leaders wrangled over the terms of an extension.
A current House bill would have extended the program for five years. However, the House agreed with the Senate version, in part to avoid another shutdown at the end of this month.
A move to add windstorm coverage onto the bill failed, so hurricane coverage will not soon be part of any national program. Other contentious issues also led to the repeated delays in long-term approval recently, such as disagreements over increased coverage limits, and charging policyholders a rate that commensurate with their propertyâ€™s risk of flooding.