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Government extends NFIP for homeownersPosted On Thu, July 26, 2012
The National Flood Insurance Program's extension was recently supported by the National Association of Realtors, as it will provide many homeowners with flood coverage for the next five years.
Flood coverage extensions was made permanent by the Biggert-Waters Flood Insurance Reform Act of 2012, which will give coverage to many homes through September 2017. Flood insurance is mandatory in some parts of the country, and this helps many who need coverage ensure that they will not be lacking. Approximately 5.6 million need some sort of coverage, as their mortgages require it.
"As the nation's leading advocate for homeownership and housing issues, we are pleased that Congress has approved a long-term reauthorization of the National Flood Insurance Program, which ensures access to affordable flood insurance for millions of home and business owners across the country," said Moe Veissi, president of NAR. "The five-year reauthorization will end the uncertainty of NFIP stopgap extensions and shutdowns and will help bring stability to real estate markets."
This is the first long-term extension of the plan in years, the association explained. In 2008, the federal government began a series of short extensions, while the program expired twice. This prevented more than 1,000 transactions for each day the expiration was not rectified. The association estimated that 40,000 home transactions did not occur because of these issues.
While many homeowners may be now covered with flood insurance plans, there may be other parts of their policy that need improvement. This can be rectified by looking toward multiple options online. By comparing home insurance quotes, a homeowner may get exactly what is needed to protect themselves against disaster. There are many private options available, and some may be more affordable than the government-sponsored plan.
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