The National Flood Insurance Program Has Been Extended To Mid-December
The National Flood Insurance Program Has Been Extended To Mid-December
National Flood Insurance Program’s authorization was extended by Congress to December 16, 2022, by an executive order signed by President Joe Biden late last week.
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“NFIP reauthorization is an opportunity for Congress to take bold steps to reduce the complexity of the program and strengthen the NFIP’s financial framework so that the program can continue helping individuals and communities take the critical step of securing flood insurance,” said the program’s administrator, the Federal Emergency Management Agency, in a statement.
If the NFIP expired, FEMA stated that it would still be able to pay legitimate claims with sufficient cash, but policies would no longer be sold or renewed. According to FEMA, this would have prevented tens of thousands of home purchases.
The National Flood Insurance Program Has Been Extended To Mid-December
The extension comes as people in Florida and the Carolinas contend with a large storm surge brought on by Hurricane Ian. However, a recent study by Verisk Extreme Event Solutions found that residential homes in Florida don’t purchase flood insurance at high rates. A typical homeowners policy does not cover storm surges.
“The level of damage from recent catastrophic storms makes it clear that FEMA needs a holistic plan to ready the nation for managing the cost of flooding under the NFIP,” FEMA said.
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RIMS said the reauthorized NFIP bill “provides critical financial support to coastal properties, as well as many commercial and residential properties located in flood zones across the United States.
“The extension not only allows these properties to remain financially protected, it also enables them to remain compliant with strictly enforced insurance mandates found in real estate contracts.”
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