The National Flood Insurance Program (NFIP) has been extended until September 30, 2020. While this short term extension provides some predictability for homebuyers and sellers it is far from a permanent fix.
"Confidence and stability are two of the most critical factors impacting America’s housing market and economy," the National Association of REALTORS®’ President Vince Malta said after the agreement passed the House.
This program has operated on a string of short-term extensions and endured multiple lapses over the past two years, creating uncertainty for homebuyers and sellers alike. The NFIP was extended 17 times between 2008 and 2012, and lapsed 4 times: March 1 to March 2, 2010; March 29 to April 15, 2010; June 1 to July 2, 2010; and October 1 to October 5, 2011.
In Louisiana, this unpredictability has put home sales in jeopardy and left insurance policies in limbo. Property owners and buyers need certainty to complete transactions that can take from 45 days (residential property) to over six months (commercial), and NAR research has consistently shown that NFIP lapses threaten 1,300 transactions each day.
NAR is urging Congress to use the additional time afforded by this extension to work toward consensus on the NFIP Reauthorization Act. Louisiana REALTORS® is working consistently on the bills that have been filed in Congress to reach a bipartisan, long-term solution for the NFIP, and is regularly in communication with the Louisiana Congressional delegation on this very important topic.