National Flood Insurance Program Expires Soon. What it Means for Homeowners
On September 30, less than six months from now, the National Flood Insurance Program will expire. The National Association of REALTORS® is working closely with federal regulators and members of Congress to strengthen the program and clear the way for a private market to take hold, but REALTORS® warn the program’s September 30 reauthorization deadline is a threat to consumers.
Policyholders in over 22,000 communities across the country depend on the NFIP to protect homes and businesses from flooding. Without the reauthorization, the NFIP cannot issue new policies or renew existing residential or commercial policies that expire. That is bad for consumers and potential homebuyers, as well as the broader economy. When the NFIP last expired, NAR estimated that 1,300 home sales were disrupted every day as a result. That is 40,000 sales every month.
Talk with an insurance provider about how expiration of the National Flood Insurance Program would hamper the ability to offer mortgages or insurance policies on properties in a flood zone. Then talk with a REALTOR® about what it means in their business and for their clients who are pursuing homeownership. Also look at the Federal Emergency Management Agency’s most recent data on how many policies are in effect in your state.