The National Flood Insurance Program (NFIP) has been extended through May 31, 2010. The NFIP, a federal program, was originally set to expire March 28, and remained suspended until its renewal on April 15.
Homeowner insurance renewals are effective from the date a renewal application was submitted, regardless of the period of suspension. Likewise, the 30-day waiting period for the activation of any new policies will begin on the date an application was submitted rather than the day on which the program was reactivated.
first tuesday take: This temporary extension is no surprise. The NFIP continues to limp along with the now monotonous routine of expiration, suspension and extension thanks to contentious debate.
Many California single family residences (SFRs) are located in floodplains, and this debate fuels uncertainty in the purchase and ownership of these homes. This extension inspires no certainty. It merely delays the NFIP debate, solving nothing.
Without certainty about their future, homebuyers and owners in floodplains will get the feeling they are living in Argentina’s failed institutional environment.
Re: “Flood Insurance Program Is Back — for Now” from The New York Times