Thursday, September 22, 2011

Federal Flood Program may temporarily lose authority next Friday, September 30, 2011

There’s a chance that the National Flood Insurance Program (NFIP) will temporarily lose its authority on September 30, 2011.  The U.S. Senate and Congress are currently considering the funding of a short-term extension of the program.  Will the U.S. Congress and Senate decide to extend the Federal Flood Insurance Program past the September 30, 2011 deadline?It is believed that the measure will likely pass, but might not prior to the end of the NFIP’s current operating authority at midnight on Friday, September 30th.
If the NFIP does temporarily expire, NO insurance companies and agents will be allowed to issue new flood policies, increase coverage on existing policies, nor renew existing policies.  However, policies in effect as of the last day of the program are NOT affected.
If you’re in the middle of a home closing and need flood insurance, specific rules, based on timing, will determine whether flood insurance will be available.   I’ll be glad to help you figure out how these specific rules apply to  your situation. 
Likewise, if you’ve already received your renewal notice for current flood insurance, and pay the renewal premium within the 30-day grace period, you’ll have coverage.  However, renewal notices due to be processed and mailed out after September 30th won’t be sent out, IF the NFIP authority isn’t extended.  Then, all bets are off until the program is funded again.
Hopefully, none of this will come to pass, and the U.S. Government will fund the program.  But time is growing short.  When action, or inaction occurs, I’ll let you know.  Stay tuned…