President Barack Obama signed legislation April 15 reinstating the National Flood Insurance Program (NFIP) after a two-week lapse. The extension is effective until May 31, 2010.
What this means
The NFIP extension means:
- New flood policies can be written.
- Existing policies can be renewed.
- Existing policyholders can increase coverage limits.
- Real estate closings in floodplains no longer are delayed.
The legislation is retroactive to cover any new policies or renewals that were signed and submitted during the two lapses this year.
After several short-term extensions over the last few months, Congress is considering a bill that would extend the program through the end of 2010.
I'm not sure if any of you were impacted by recent issues with NFIP but it's a relief to have the ability to close transactions that are in a flood plain once again.