Category Archives: Flooding

Congress approves short-term extension for National Flood Insurance Program | State Politics |

Two week extension for flood insurance program. Still a lot of work before we know what is going to happen.


Flood Insurance Program Update

Received from the Marshfield Citizens Coastal Coalition


At the end of the day on Friday, December 8th, the National Flood Insurance Program (NFIP) expires.  The extension of the program is built into the Congressional Continuing Resolution, which has yet to be passed.  If the Continuing Resolution is not passed by Friday night, December 8th, the NFIP will expire.  This means no new policies can be written, existing policies cannot be renewed on their renewal, no claims can be filed and it may become difficult to close on a home during this time.  FEMA has also indicated they may not do a “look back” once the program becomes effective again, meaning forced place lender insurance may be required to cover the gap.

We suggest several actions for you at this point:

  • If you are closing in the next few weeks, and flood insurance is part of your closing, pay your flood insurance policy now (before the end of the day Friday) before the closing, with the effective date of the policy still being on the closing.

  • If you are coming up for a renewal in the next few weeks, pay your premium now.

  • If you do close on a home during this time without getting a flood policy ahead of time, you will be forced to get either private flood insurance or lender-placed insurance.

We will keep you up to date on what is happening, but should a Continuing Resolution pass on or before Friday, we expect this issue to continue for the next month or so as multiple, short-term Continuing Resolutions are considered.

For questions on your specific lender requirements, please check with your lender and insurance agent.

I am going to admit, I do not know what the mean by “lender-placed” insurance as the lenders place insurance with national companies that deal in NFIP sponsored insurance. I can only guess that this would mean the lenders will line up private insurers.  An insurance industry posting I found out of Florida suggested that there will be no lending activities in the flood zone come 12:01 am on Saturday if there is no continuing resolution. This could be quite a hit for real estate activity, in November, the Registrar reported that the volume of sales was down 0.8% over last year. Median Sale Value was also down 1.4% over last year.

Basic Bottom Line, as noted above:

  • If you are buying in the flood zone, buy your insurance before the end of the day tomorrow (Friday)

  • If your policy needs to be renewed in the next few weeks, renew before the end of the day tomorrow (Friday)

Need flood insurance? Process could grow difficult

The latest I can find. The House passed a flood insurance plan that will drastically increase rates and could affect real estate value. The Senate has a more consumer friendly bill, but has not taken action yet. It looks like we may be facing short-term continuing resolutions while the dust settles.

Moody’s Warns Cities to Address Climate Risks or Face Downgrades – Bloomberg

Getting hit from all sides. Flood insurance rates going up. Municipal fiscal capacity to protect against storms taking a hit with higher interest rates. Climate change funds from the federal level drying up. Permitting protection measures challenging.