“The latest spending bill approved by Congress will keep the National Flood Insurance Program (NFIP) up and running until July 31, but this time there is a caveat. NFIP funding is no longer on the same timetable as the federal budget,” according to an article in the Tampa Bay Times.

So, why is this important?  With NFIP reauthorization no longer tied to the spending bill, there is a possibility that the Program could expire on its due date, with Congress going into August recess with no reauthorization.  This will have a devastating effect on the real estate market with no flood policies being written while the program is suspended.  Sales and purchases of properties that involve a Federally backed mortgage would not be able to close without flood insurance.  Even more frightening is that this takes place when hurricane season is picking up, putting homeowners at risk with no flood insurance coverage.

Read the full article:  tampabay.com-Romano Your flood insurance policy may have run out of reprieves

 

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