The National Flood Insurance Program’s authority to issue policies was recently extended for a full year, until September 30, 2021. This is the 16th short-term extension of the NFIP since Congress reauthorized the program in 2012 and extended it in 2017, and the one-year extension is the longest of those extensions.
The NFIP provides stability for the housing market. As part of its Flood Services business, CoreLogic completes flood zone determinations for banks and mortgage companies to support their compliance with the mandatory purchase requirements. If CoreLogic determines that a home is in a high-risk flood zone, as a condition of that loan, the bank must require flood insurance – and most of those policies are written through the NFIP.
The NFIP also provides assurances for homeowners. We’re currently in one of the most active hurricane seasons, and it’s critically important that the more than 5 million Americans with flood insurance know that their policy can be renewed at time of renewal.
The mandatory flood insurance requirement is a minimum requirement and can serve as a safety net, in that a population of loans in a high-risk area with a mortgage will have that required flood insurance. CoreLogic has seen that the mandatory purchase requirement reduces the amount of time it takes for a community to recover.
For more information, visit CoreLogic.com.