NFIP Could Possibly Lapse This Friday
As of the writing of this message, Congress has not yet extended the National Flood Insurance Program, which expires at midnight on Friday, November 30th.
There is currently no clear path forward, but experts are “cautiously optimistic” a deal will be struck in Congress to avoid an NFIP lapse. This will continue to be an issue as Congress intends to only pass short term extensions for the foreseeable future.
There are three possible paths forward as of writing this update:
-A lapse of the NFIP
-A 7 day extension to align the NFIP with Federal appropriations
-A 6 Month extension to allow for appropriate reforms
FEMA has issued guidance for insurance companies on how to handle writing new flood policies, policy renewals, and claims during a flood program expiration. 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 November 30th, 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 November 30th, PAY FOR THE POLICY NOW. If paid before the program expires, the policy will still go 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
Giving Tuesday: Help Us Give
Over the last six years, the MCC has helped save thousands of dollars for hundreds of flood insurance policy holders, helped guide legislative activity, and educated thousands on flood hazards. On this Giving Tuesday, help us give more by giving to the MCC. The MCC became a 501c3 charitable organization this year so your donation is tax deductible.
There are three easy ways to donate:
Follow Up From Pre Disaster Event
Did you attend our pre disaster event or missed it and wish you could? Go to our downloads page to see all the presentations from our outreach. Other documents and a recording of the event will be available online soon.