National Flood Insurance Program Expires
Word from Congress is the National Flood Insurance Program should get extended this week by 9/30/10. If not, then properties that are in a flood zone will not be permitted to close after October 1, 2010 until the National Flood Insurance Program is re-instated.
In order to get secured financing to buy, build, or improve structures located in a 100 year flood plain you will be required to purchase flood insurance. Federally regulated lenders are required by law to determine if the structure is located in a 100 year flood plain. In other words, for properties located in 100 year flood plains: no flood insurance, no loan!
Assessing Your Risk for Flood Insurance
100 year flood plain , it does not mean your chances of a flood are one in 100 years. It's a confusing term, but a 100-year flood plain assessment means you have a 1-in-100 chance of a flood in any given year, or a one percent chance each year. Interesting ! I really did not know what the term meant until I was researching a home in a 100 year flood plain and I needed to be able to answer my clients questions.
Ask your insurance agent to look at the flood maps to determine if your home is located in a flood plain and, if so, find out what kind of flood plain and the level of risk.
Stay tuned for Congress decision on National Flood Insurance Programs!
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