Just days after the National Flood Insurance Program (NFIP) expired on January 19, a national body of insurance agents has called on Congress to immediately pass legislation that would extend the program.
According to the National Association of Professional Insurance Agents, the NFIP lapsed because of the deadlock in Capitol Hill - the stalemate has triggered the shutdown of federal government.
“Many consumers engaged in real estate transactions may experience disruptions because of this lapse, with some home sales put on indefinite hold. If flooding events occur during this lapse, some claims will not be processed,” said the PIA.
The NFIP originally expired on September 30 last year, after its five-year authorization ended. It was then extended until December 08, then again until December 22, and then extended again until January 19.
The NFIP provided some 5.2 million property owners with critical flood coverage, but it was in considerable debt (about $25 billion) at the start of 2018 and under enormous pressure after last year’s catastrophic hurricane season.
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