Sale Of Homes Requiring Flood Insurance Treading Water

Forget the economy or tough credit– if you’re selling a home in a flood zone and you need flood insurance in order to close on the purchase, you’ll have to wait. Congress wasn’t able to agree on terms for extending the National Flood Insurance Program before going to recess. That means NFIP can not issue or renew policies as of March 28. While existing policies aren’t impacted, it means sales of homes in flood prone areas are forced to tread water.

This delay has happened two other times in recent months because of political and funding delays. “I’m for continuing vital programs like flood insurance and I think we should use common sense and extend this necessary program without further increasing the federal debt,” said Sen. David Vitter to Houma Today, R-La. “Louisianians, Americans get this. Why can’t Congress?”

Congress will take up the legislation on April 12 when it returns to session. Standard homeowners insurance policies don’t cover flooding which is why the flood insurance program was created in 1968. It offers coverage from floods caused by hurricanes, overflow of rivers or lakes, rain storms, mudslides and snow melt.