The National Flood Insurance Program (NFIP) is set to expire on Sept. 30, which would deny necessary insurance coverage to homeowners and buyers in more than 20,000 communities nationwide. This impending deadline could have significant implications for Realtors® and their clients, especially those in flood-prone regions. The National Association of Realtors® estimates an extended lapse could threaten 1,300 property sales nationwide each day.
NAR is actively working on this matter and has been advocating for a long-term reauthorization of the NFIP with needed reforms. Earlier this month, NAR joined other organizations in sending a letter to Congress urging an immediate extension of the NFIP.
NAR Insurance Committee Chair Cynthia Haydon recommends immediate action:
- If you have clients currently under contract, it is strongly advised to ensure they bind and pay for their flood insurance before the Sept. 30 deadline.
- For clients whose flood insurance is up for renewal within the next 30 days, consider encouraging them to renew their policies as soon as possible.
Private flood insurance backed by a source other than NFIP (e.g., Lloyd’s of London) is not affected. Visit the Pennsylvania Insurance Department website for options and remind your clients to read the fine print of any insurance policy.
For more information, refer to NAR’s frequently asked questions.