Here we go again…the National Flood Insurance Program is set to expire on September 30 and if allowed to lapse, that means no new or renewed policies. This has the potential to impact real estate transactions so here are some concrete actions you can take to head off any issues. Update provided by NAR’s Insurance Committee Chair.
Please be aware that the National Flood Insurance Program (NFIP) is set to expire on September 30th. This impending deadline could have significant implications for our clients, especially those in flood-prone regions.
The National Association of Realtors (NAR) is actively working on this matter. Please refer to the NAR FAQ for a comprehensive understanding of NAR’s ongoing efforts and preparations. You can get it here: https://www.nar.realtor/flood-insurance/faq-national-flood-insurance-program-expires-september-30-2023
Recommendation for Immediate Action:
- If you have clients currently under contract, it is strongly advised to ensure they bind and pay for their flood insurance before the September 30th deadline.
- For clients whose flood insurance is up for renewal within the next 30 days, consider encouraging them to renew their policies as soon as possible.
And now on to issue #2, the potential for a government shutdown. NAR has put out a great update on how different programs would be impacted. Quick look: FHA can still operate for single family home loans but no multifamily, NFIP suspends so no new policies or renewals (see above), and USDA will not issue any new RD direct loans.