On Nov. 21, 2019, the president signed legislation passed by Congress that extends the National Flood Insurance Program’s authorization to Dec. 20, 2019. Congress must now reauthorize the NFIP no later than Dec. 20, 2019.
The Federal Emergency Management Agency and Congress have never failed to honor the flood insurance contracts in place with NFIP policyholders. Should the NFIP’s authorization lapse, FEMA would still have authority to ensure the payment of valid claims with available funds. However, FEMA would stop selling and renewing policies for millions of properties in communities across the nation. NAR estimates that a lapse could affect approximately 40,000 home sale closings per month.