Just a little FYI, we have received notice from our flood companies that Congress will be adjourning without passing a bill to reauthorize the National Flood Insurance Progarm beyond May 31, 2010. This means the program will expire at midnight on May 31, 2010.
If you have an outstanding bill on a renewal, you need to have this posted with your flood carrier before midnight on May 31, 2010 or you will face the possibility of a lapse in coverage until Congress reconvenes and votes on the bill. This could be as early as June 7, 2010. Policies that are in force will not be effected.
FEMA has advised companies to pend premium transactions received after May 31, 2010, until, and if, Congress and President Obama pass and sign the bill that re-authorizes the NFIP. New and renewal policies or coverage changes will go into effect at the earliest date, which is consistent with the receipt of premium and waiting period rules of the NFIP and the expected extension of authority for the NFIP. For applications made in connection with a mortgage loan, if the extension of the authority to issue flood insurance policies under the NFIP is granted retroactively, new policies will be issued effective as of the date of the loan closing. Additionally, if Congressional extension is granted retroactively, any claim for insurable losses suffered from the effective date for the policy term will be honored by the NFIP, even if the authority is granted after the date of such losses.
Please note that policies or coverage changes will only be effective if the extended authorization of the NFIP becomes law, which is expected. If Congressional extension is not granted within a reasonable period, premiums will be refunded. In this event, the requested coverage will not go into effect and no coverage will be afforded.