The National Flood Insurance Program (NFIP), which is set to expire on September 30, 2011, is poised to get a temporary extension to provide Congress with additional time to reconcile competing bills in the House and Senate.
The measure, if approved, would temporary extend funding for the program until November 18, 2011. The NFIP provides low cost federal flood insurance for homeowners in areas designated as flood zones.
In addition to continuing to provide disaster relief funds to states impacted by Hurricane Irene, the extension would allow for flood insurance policies to continue to be issued. Should the program lapse, new mortgage applications requiring flood insurance would be on-hold pending the extension of the program.
The competing bills in the House and Senate seek to extend the program for five years and are seeking ways to address the current $18 billion in debt. The program provides insurance to more than 5.6 million homeowners.
