I have been getting quite a few phone calls on the issue of the expiration of the National Flood Insurance Program (NFIP). In fact this issue is currently holding up one of my closings for a house on Lake Placid. Most lake/river houses require flood insurance to close, especially if there is a lender involved. So if you have a lake/watefront house for sale or looking to buy one on Lake McQueeney, Lake Dunlap, Lake Placid, or Meadow Lake then check back here for the latest info on the status of the NFIP. Since I am not extremely familiar with the all the details, I asked my good friend, Derrick Bacon with farmers Insurance, to explain what is going on. He stated:
As you might know, the National Flood Insurance Program (NFIP) expired on March 28, 2010. Efforts to extend the program have been unsuccessful thus far. The reason for the expiration is not due to Congressional opposition to the NFIP, but rather that the NFIP is one program rolled into a much larger bill with many other programs, that have seen opposition based on the cost of extending those programs.
Until NFIP is reinstated, all companies and agents cannot, issue new policies, increase coverage on existing policies, or renew existing policies. The NFIP is still accepting payment, but only in an effort to generate a paper trail. They cannot guarantee effective dates, or issue Declarations pages.
The hope is that there will be a vote to extend the NFIP this week, but there is no guarantee. If a vote happens, and it is in favor of extending the program, the President should have it by next week and everything would be back to normal by the end of next week. If no vote takes place, or if the vote is not in favor of extending the program, the NFIP will remain in this state until a favorable vote takes place.
If you have questions, please let me know. Thank you.
Derrick B. Bacon, LUTCF
Insurance and Financial Services Agent
9862 Lorene Ste. 104
San Antonio, TX 78216
Office 210-495-1300
Fax 210-298-3130
dbacon@farmersagent.com
www.farmersagent.com/dbacon
“Helping People Understand the Difference
Between Having Insurance, and Being Insured.”