A National Flood Insurance Program Lapse Would Hurt Irene Victims

The National Flood Insurance Program (NFIP) is facing a number of claims from Hurricane Irene. However, NFIP, which provides flood insurance to 5.6 million homes and businesses, is set to expire Sept. 30.

Standard homeowners' policies do not cover flood damages.  The program is under debate in Congress.  However, with the variety of issues that need to be addressed with the program, lawmakers say a short-term extension is the most likely solution for the immediate future.

When the program lapsed in June 2010, approximately 47,000 home sales were delayed or canceled, according to NAR. If another lapse occures, NAR economists estimate 1,300 home sales could be stalled per day nationally. 

Source: "Claims Flood Insurance Fund," Wall Street Journal (09/02/11) and "Flood Insurance Lapse Puts Home Owners, Housing at Risk," The Huffington Post (08/31/11)

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