The U.S. Senate on July 31 passed a bill that extends the National Flood Insurance Program through November 30, 2018. Just hours before the NFIP was set to expire, the bill was signed at the White House.
While extending NFIP through November is helpful to homeowners all across the U.S., it is nonetheless akin to “kicking the can down the road” by adding just a few months to the program.
Flood insurance is a difficult product for insurers and many insurance companies rely on the NFIP to add stability to their markets. Additionally, many lenders will not finance a home mortgage on a property in a flood zone without flood insurance. Because of this, NAR found that should the NFIP be eliminated and flood insurance become unavailable, around 1,400 sales transactions would fail every day.
Instead, NAR has led the charge in calling for long-term reform of the NFIP.