National Flood Insurance Program gets reauthorized through September 30, 2017

After years of political stalemate the National Flood Insurance program finally achieved a long term reauthorization. This reauthorization extends the program through September 2017.

The NFIP has survived through a total of 17 short term extensions since 2008 following Hurricanes Katrina and Rita which saddled the program with overwhelming debt. According to the FSC and industry officials the program temporarily lost authorization four times, mostly in 2011, resulting in the postponement of home sales closings in communities where flood insurance is mandatory.

Part of the bill that allowed this reauthorization includes a key component that allows the Federal Emergency Management Agency (FEMA) to raise flood insurance rates a maximum of 20 percent annually, as compared to the previous law that allowed a maximum annual rate increase of 10 percent.

The bill also reiterates FEMA's authority to buy private re-insurance to back the program which should reduce FEMA's reliance on Treasury loans to fund the program.

If you currently don't have flood insurance and you are considering buying some, don't wait. New flood insurance has a 30 day waiting period. You can purchase coverage today, but it won't go into effect for at least 30 days.

For more information or to request flood insurance from Fitts Insurance, please contact us!

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