Government Extends Flood Insurance Program For One Year

I have been keeping a close watch on the National Flood Insurance Program (NFIP). More than 5 million homeowners use the program administered by the Federal Emergency Management Agency (FEMA)    which provides flood coverage through a network of over 90 private companies. Three lapses in the program this year have left many buyers and sellers in a state of flux.   President Obama recently signed the Act which extends the program until Sept. 30, 2011. This is great news for everyone trying to buy or sell a home in a designated flood plain since new policies can't be issued and renewal applications can't be processed during the expiration period.  The one year extension is a reprieve, but it is not a solution to a complex problem. Spokespersons   for The Independent Insurance Agents & Brokers of America commended the President for signing S. 3814, but noted there is a need to implement permanent reforms such as a long term extension, an increase in maximum coverage limits and the addition of optional business interruption insurance.      This Week's Real Estate Insight   Only 4 percent of the residential and commercial buildings in Rhode Island carry flood insurance, according to the Rhode Island Emergency Management Agency.     While you might think that the premium for flood insurance is high, the average flood claim is over $33,000. Information about flood insurance can be found at www.floodsmart.gov