Call for Action: Tell Congress to Reauthorize the National Flood Insurance Program

Right now Congress is debating whether to reauthorize the National Flood Insurance Program (NFIP).  It expires on September 30.  This is the tenth time in three years this program has been set to expire.  It’s time we stop the band-aid approach to flood insurance and give the program a long-term extension. For this reason the National Association of REALTORS® is urging Congress to reauthorize NFIP for five years.

Do you know what happens every year when the deadline nears?  Lenders stall closings, adding more uncertainty to our already tentative marketplace. More than 20,000 communities nationwide depend on this program to in order to buy and sell real estate. You simply cannot acquire a mortgage without flood coverage and a policy cannot be issued without the assistance of this program.

Maintaining available and affordable flood insurance for all Americans that need it is vital to keeping the market running smoothly. Contacting Congress is easy, and it only takes 2 clicks to make a difference! Please take action today here.

Dana Kervin


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  • […] This might seem like a crazy topic considering the string of days our area has had without rain (although it is finally raining on the day this magazine is going to press), but the National Flood Insurance Program (NFIP) is once again top of mind for us. The last extension was only until September 30, 2011 so we need to contact our legislators to encourage them to extend this vital program—and for longer than just a few months. You may read more about it here. […]

  • Uhhh … why should the government be involved with flood insurance? I’ve always gotten home insurance from companies – why on Earth do I need to go to the government for flood insurance?

    If the answer is “because flood insurance would cost too much”, then that means taxpayers who DON’T live in flood plains are subsidizing the ones who DO.

    • Calvin, thanks for your feedback. By federal law, flood insurance is required to obtain a mortgage in more than 21,000 communities nationwide. The NFIP was created and continues to address a historic (and unfortunate) inability of the private market to provide access to affordable flood insurance. Plus, without this program, the only way for many owners to rebuild after a flood would be when the federal government inevitably provides post-disaster rebuilding assistance – using taxpayer dollars.

      It’s also important to remember that floods are a national problem requiring a national response.  Flood disasters have been declared in every state — along rivers, anywhere where snow melts or rain falls.  This is why we have a NFIP.  Historic claims data actually shows the top three states contributing the most net revenue to NFIP coffers were on the Gulf; however, the top three with the most NFIP net loss years were actually in the Midwest. Hope this is helpful in explaining our Call for Action. – Dennis




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