National Flood Insurance Extended for Five Years
The extension of the National Flood Insurance Program (NFIP) is a multifaceted victory for homeowners, businesses,
banks, and real estate professionals.
This brings certainty to the areas throughout the nation where coverage
is necessary to obtain a mortgage.
The Surface Transportation Bill (H.R. 4348) included the
specifications necessary to reauthorize NFIP through 2017. President Obama
signed the bill into law on July 6, 2012.
Reforms to NFIP include:
Multifamily properties: insurance available to
cover residential properties of 5 or more residences (Section 100204)
- Repetitive loss: eliminates properties from
receiving coverage multiple times (Section 100205)
- Repayment Plan: funds borrowed will have a
repayment plan beginning six months after funds are borrowed with reports on
progress to full repayment (Section 100213)
maps: improved accuracy with technical expertise leadership (Section 100215)
- Research: coverage on business interruption and
additional living expenses, report on building codes and floodplain management
(Sections 100233 and 100235)
- Flood Loss Allocation Formula: establishes by
rule a standard formula to determine and allocate wind and flood losses to
avoid complicated lawsuits (Section 100253)