What is the story about?
What's Happening?
Organizations representing the insurance, real estate, mortgage banking, financing, and property management sectors have called on Congress to extend the National Flood Insurance Program (NFIP) before its expiration on September 30. Without reauthorization, the Federal Emergency Management Agency (FEMA) would halt the sale of new flood insurance policies. The industry groups, including the National Association of Mutual Insurance Companies (NAMIC) and the American Property Casualty Insurance Association, emphasize the need for stability in the flood insurance market to protect homes and businesses. They warn that a lapse in the program could disrupt flood insurance purchases in numerous communities and impact property sales significantly.
Why It's Important?
The potential expiration of the NFIP poses a significant risk to millions of Americans who rely on flood insurance to safeguard their properties. The insurance industry argues that the uncertainty caused by partisan politics could leave many without necessary coverage, especially during the ongoing hurricane season. The lapse could also affect the real estate market, with an estimated 1,300 property sales per day and 40,000 closings per month potentially impacted. The call for a one-year extension of the NFIP highlights the critical need for government action to ensure continued protection against flood risks.
What's Next?
If Congress fails to act, the NFIP will expire, leading to a halt in new policy sales and potential disruptions in the real estate market. The insurance industry and other stakeholders are likely to continue lobbying for the program's extension, emphasizing the importance of flood insurance in protecting communities. The outcome will depend on Congressional negotiations and the ability to reach a consensus on the budget and the NFIP extension.
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