Congress Reauthorizes National Flood Insurance Program Through 2017

 Better Late than Never…………………….In the past few years the () has had several lapses in authorization forcing many homeowners to postpone or totally cancel closings due to the inability to obtain NFIP insurance to satisfy the mortgage requirement.

(National Association of Home Builders) has worked tirelessly to have the projected July 31st expiration of this program extended for 5 more years. This extension will provide security to the individual homeowner who needs this insurance to satisfy their mortgage requirement. The NAHB effort will also add stability to the general housing market.

Included in the NAHB effort was to remove the “residual risk” language from the new legislation. The “residual risk” language would have required mandatory purchase of flood insurance for those located behind dams or levees.

“NAHB believes the local investment in these flood control structure stakes into account the risks, and to mandate the additional flood insurance policies at a cost to the homeowner is simply unfair” said NAHB Chairman Barry Rutenberg.

This 5 year extension of the NFIP ensures the program will remain available, affordable and financially healthy says Rutenberg. The NFIP, established in 1968, offers homeowners and businesses the ability to purchase an affordable flood insurance for those buildings in flood plains and low-lying areas that otherwise might not be able to. More than 20,000 communities nationwide participate in the program with approximately 5.6 million policyholders.

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