The major federal flood-insurance program that covers millions of properties is set to expire by the end of this month. Experts expect Congress to reauthorize the program — but also question whether renewing what they call a flawed program will be enough to help homeowners. The National Flood Insurance Program, or the NFIP, needs to be reauthorized by Congress by the end of September so that home buyers can close on their homes with new policies. Buyers who purchase properties with government-backed mortgages in high-risk flood zones are required to have flood insurance.
“I’d be shocked if they didn’t reauthorize it,” Daniel Schwarcz, a University of Minnesota law professor whose research focuses on insurance law and regulation, told MarketWatch. “Even though there have been some efforts to revitalize that private flood-insurance market, those have not really gone off particularly smoothly.” “There’s still a lot of need for the program; a lot of people rely on it,” Schwarcz added. “So it would create a huge amount of problems if the government didn’t reauthorize it.” In the “slim chance” that Congress lets the flood-insurance program expire, that would push homeowners to look at private insurers, and their costs could go up significantly, Jeremy Porter, the head of implications research for First Street Foundation, told MarketWatch. The NFIP covers …
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