* This is an important update for those with renewing flood insurance policies and those buying homes that are in a flood zone. *
As you may be aware, the statutory authority to issue flood policies pursuant to the NFIP was extended in April effective March 28, 2010 and is now due to expire again on May 31, 2010.
Over the past several weeks, insurance agents and insurance companies have continued to work with the industry trades and FEMA, both of which are hopeful that Congress will pass another extension prior to the May 31, 2010 deadline. While we are hopeful that Congress will pass the necessary bill, we believe it is important to provide you with the necessary information in the unlikely event Congress does not take action or should action not be taken prior to the expiration of the program.
Under existing statutory authority, flood insurance writers can process and issue policies for all new applications, renewals and endorsements for coverage changes, provided they are accompanied by the appropriate premium and received in their flood insurance provider’s offices on or before May 31, 2010, regardless of the actual effective date of the policy.
Should Congress fail to extend the program on or before May 31, 2010, flood insurance writers would not be able to process or issue policies until the NFIP was re-authorized and any premium received after May 31, 2010 would be returned.
A lapse would not impact the ability to service and pay claims for in-force flood policies issued on or before May 31, 2010 with dates of loss during the lapse.
If you’ve received a renewal notice from your carrier, make sure you get your renewal premium in now if you haven’t already done so.