National Flood Insurance Program extended one month

Late Tuesday, President Obama signed H.R. 4691 into law, extending the National Flood Insurance Program (NFIP) for one month – until March 28, 2010.

NFIP’s expiration date was Feb. 28. Without Congressional extension, the program officially lapsed for almost two days, impacting the issuance of new flood insurance policies until late in the day on March 2.

“Real estate closings can get delayed when mortgage holders require flood insurance, putting the financial security of millions of Americans at risk,” says Mike Becker, director of federal affairs for the National Association of Professional Insurance Agents. “This is only a short reprieve,” he adds.

The one-month extension gives Congress time to consider a broader initiative that would extend NFIP until the end of the year. In a Government Affairs Update, the National Association of Realtors® says it will continue to push for a longer extension to avoid compounding market uncertainty and give Congress sufficient time to enact meaningful long-term reform.

Most observers expect an NFIP extension to be in place by the March 28 deadline, but Matt Brady, a spokesman for the National Association of Mutual Insurance Companies, notes that this is the second time NFIP has been allowed to expire for reasons that have nothing to do with the program itself.

© 2010 Florida Realtors®