The Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569), an extension of the National Flood Insurance Program, until September 30, 2010. This will allow transactions to move forward. The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension.

 

National Flood Insurance Program
The National Flood Insurance Program (NFIP) provides flood insurance to homeowners in participating communities in flood-prone areas, who could not otherwise obtain coverage due to cost or ineligibility. Without insurance provided through NFIP, property owners in federally designated areas across +10,000 communities nationwide could not obtain mortgages.

The NFIP also produces the Flood Insurance Rate Maps (FIRMs), which are critical for the transaction of properties located in, or adjacent to, a floodplain. If these maps are not updated regularly, the information may be incorrect and a buyer may be unaware that a property is at an increased risk for flooding.