In an April 23rd press release FEMA, the Federal Emergency Management Agency, requested a long-term extension asking congress for a two year extension of the program. FEMA also reports that besides the inability to write new policies, if there is a lapse in authorization that diminishes income to the program and payments to recent flood victims might be delayed or even halted.
There are a large number of real estate transactions that require flood insurance coverage and NAR reports that approximately 40,000 transactions per month would be placed in jeopardy by a failure of Congress to pass any reauthorization of the NFIP. You can read the FEMA press release by clicking here.
In a fall publication Henry Harrison wrote about the NFIP as wll as his personal experience with Hurricane Irene and with FEMA personel, whom he described as "professional, courteous and genuinely helpful." He concluded his article with the following statement; "Seems Congress is once again playing brinksmanship with America's flood insurance program. After our recent experience, that doesn't seem wise to us."
You can read more from Henry's October 2011 article at http://www.revmag.com/.