09/13/2024
Flood Insurance Deadlines Causing Concern:
Would-be homebuyers have been waiting for a Federal Reserve rate cut, which is expected to happen later this month. However, another problem looms: the possibility of flood insurance disappearing.
The reason for this? The National Flood Insurance Program (NFIP) needs to be reauthorized by September 30 to continue to issue new policies or increase coverage on existing policies. Some buyers have already postponed their plans because of this news, as finding financing that requires flood insurance could be nearly impossible if the NFIP extension doesn't happen.
A long-term problem with the NFIP is its debt. The program is currently over $20 billion in the red, with a portion caused by Hurricane Katrina almost 20 years ago. Lawmakers are looking at ways to reduce future claims, including encouraging communities to not rebuild in flood-prone areas, while issuing a series of stopgap bills to extend the NFIP program.
NAR's VP of policy advocacy, Bryan Greene, commented:
"This has been an issue now for many years where the program faces expiration and Congress, [at the] last minute, reauthorizes it. We're trying to prevent natural disasters, but we seem to always face this potential man-made disaster of not acting timely enough."
