NFIP Now Headed Towards Lapse
As of the writing of this message, Congress has not yet extended the National Flood Insurance Program, which expires at midnight on Friday, December 21st.
The current political situation is complicated. Presently, the US Senate has proposed an extension to February 8th of Federal Government spending, which includes an extension of the NFIP. The bill was sent to the US House of Representatives where it was originally going to pass tonight. However, the President has now said he will not sign a bill without funding for immigration security. The House is now proposing different options. Without a quick compromise, the NFIP is set to lapse. This lapse will most likely last past Christmas.
This is an active situation.
This is not a new situation, as this will be the third short term extension in the month of December. As a reminder, the MCC has created consumer guidance for you as an insured to know what to do before, during and after a flood program expiration. Overall, our guidance outlines that:
-If you have a flood policy renewing after December 7th, and within the next few weeks, either pay it now or ask for the renewal statement (billed renewals can be paid during a NFIP lapse.)
-If you are planning to close on a home after December 7th, PAY FOR THE POLICY NOW. If paid before the program expires, the policy will still becomes effective on the closing during a program expiration.
-If your policy is in force before the program expires, and you experience a claim, your claim will be handled as usual.
We have created easy to understand guidance on what happens during a lapse: Click HERE