Senate Committee Passes Flood Insurance Bill, as Clock Ticks
September 12, 2011
With the shelf life of the National Flood Insurance Program about to expire once again, the Senate Banking, Housing and Urban Affairs Committee last week passed the latest program reauthorization legislation, the Flood Insurance Reform and Modernization Act that includes a five-year extension of the NFIP along with various program reforms. This bill would reauthorize the program and its funding through 2016, phase in premium rates that more accurately reflect the risk facing a property, and allow for the NFIP to build reserves and modernize flood maps. The bill also requires that lenders provide to all purchasers a disclosure of the availability of flood insurance under the Real Estate Settlement Procedures Act.