Conservative Refocus News

By Barry Secrest

The National Flood Insurance Program which is administered by the Federal Government has lapsed for the second time this year.  A prior lapse which occurred in late February was reinstated after Congress temporarily approved additional Government funding for one month.

This latest lapse which took effect on March 28, 2010 means that no new flood policies, changes or renewals will be issued until Congress approves additional federal funding.  The additional funding is expected to take place when Congress reconvenes on or after April 12, 2010.

In the interim, this could mean problems for borrowers who may be in need of flood insurance as a requirement by their lenders for both existing and new homes which are located in flood zones.

Once the anticipated Congressional approval of funding is confirmed, the approval will retroact back to the lapse date of March 28, 2010.  This will then allow flood insurance carriers to issue renewals, changes and so forth as if no interruption occurred.