Two weeks ago, on June 1st, I sent an email explaining the issue of new flood insurance policies not being issued due to the expiration of the National Flood Insurance Program (NFIP) at midnight May 31st. At the time I speculated that the Senate may pass the bill by June 7th, but that has not happened.

Today a procedural vote failed on the spending bill that includes the NFIP along with a myriad of other programs including extension of unemployment benefits, Medicare reimbursements to physicians and of course taxes. Fifteen Democrats joined all the Republican Senators in voting against the motion that would have move the bill forward. The reason for their vote against was the bill as it currently stands would add at least $85 billion to the deficit over the next ten years.

The bill has been taken back by the committee to be rewritten and reduce the costs, then back to the floor of the Senate. This process is expected to take a few days. In the meantime the Republicans have an alternate proposal that may see a vote sooner than the current bill can be rewritten.

Until the NFIP is re-authorized there are no new flood insurance policies being written for properties in federally declared flood zones. If you have a transaction in escrow currently in a flood zone check with the current insurer about assigning the current policy to the new buyer, before doing so however run it by your lender--especially the expiration or renewal date of the policy since my understanding from speaking a couple of agents is that renewals are not possible either.

If you have an active listing in a flood zone contact the current insurer about the ability to assign the existing policy and its renewal date so you have that information for any buyers.

If I can be of any service to you or your clients please do not hesitate to contact me.