This will be the third short-term extension approved by Congress in the past 3 months.  In 2010, the Flood Program lapsed four times.  As a result, flood insurance coverage could not be purchased for a total of 53 days.  The insurance industry has urged both the House of Representatives and Senat to pass a five year flood program extention along with reforms geared to improve the program’s pricing and underwriting.

According to the Insurance Journal, official insurance industry spokes people from the  American Insurance Association (AIA), and the Property Casualty insurers Association of America have expressed “relief that the NFIP will not lapse but disappointment that a long term extension has not been passed.”

Tom Lutjen of the Property Casualty Insurers of America said, “We are pleased that Congress was able to avert another lapse in the flood program… we continue to urge a long-term reauthorization for the NFIP, our first priority is avoiding a program lapse.”

A lapse in the flood insurance program can have disasterous consequences on property owners, renters, and business owners across the nation.  According to FEMA, nearly 20,000 communities across the nation participate in the National Flood Insurance Program by “enforcing floodplain management ordinances to reduce flood damage.”

Allowing a lapse in the NFIP’s authorization could lead to delayed home closings for homes purchased and refinanced in coastal areas and in flood prone areas. President Obama is expected to sign the NFIP’s latest extension.  For more information on the National Flood Insurance Program and program availability, contact an insurance agent or visit FloodSmart.gov.