President Donald Trump on Friday signed an extension of the National Flood Insurance Program through Nov. 21, marking the 13th time the program has been granted a last-minute reprieve from expiration. The NFIP, which faces financial challenges and is billions of dollars in debt, had been set to expire Sept. 30 until Congress rushed a bill to extend the program last week.
The NFIP is the nation’s largest flood insurer and provides coverage to 22,000 communities nationwide. It protects property owners against loss from flooding, the most common and costly type of natural disaster in the U.S. “REALTORS® urge Congress to resume working toward a long-term reauthorization of the National Flood Insurance Program,” NAR President John Smaby said in a statement. “NAR strongly supports the NFIP Reauthorization Act, which includes a five-year extension, along with significant reforms to improve mapping, enhance mitigation, and remove obstacles to private flood insurance. [The bill] strikes a delicate balance between NFIP sustainability and affordability, and we urge both chambers of Congress to take up this legislation after its unanimous approval in the House Financial Services Committee.”
Federal law requires the purchase of flood insurance for a federally backed mortgage in special flood hazard areas designated by FEMA. Private flood insurance is also available in many high-risk areas, but the NFIP may be the only option for some homeowners. And reliable flood insurance is increasingly necessary, as meteorologists warn that rising sea levels and increasingly powerful storms will continue to threaten more areas with damaging floods.
Source: REALTOR® Magazine
