December 06, 2011
By: Bruce Berry
With plans to reform the National Flood Insurance Program stalled, Louisiana Senator David Vitter is calling on lawmakers to pass another extension that will allow the program to continue without interruption.
Flood insurance, which isn't included in a standard home insurance policy, is sold by insurers through the NFIP. The current program is set to expire on December 16, which has led Vitter to call for a one-year extension. Because mortgage lenders require flood insurance for properties in flood zones, many housing transactions cannot be completed when the NFIP is not active.
"Each time the NFIP approaches its expiration date it causes a great deal of turmoil in the housing market because of the uncertainty surrounding the program, and we can easily prevent this from happening," Vitter said.
He also said that the added time would hopefully give Congress enough time to debate and enact the bipartisan reform bill passed by a Senate committee earlier this year.
Last year, the program lapsed a total of four times and 53 days because lawmakers did not extend it in time.
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