With the National Flood Insurance Program (NFIP) scheduled to expire on Sept. 30, the Illinois REALTORS® and about 42,000 Illinois homeowners who live in a flood plain are watching closely to see what action Congress takes in the meantime.
Several bills have been prepared by Congress to sustain the program, and at least one includes the possibility of raising premiums on flood insurance, according to an article in the Chicago Tribune. But the program faces debt problems incurred from large-scale catastrophes like Hurricane Sandy, and relies on feedback from policyholders and communities to keep flood plain maps up to date, pass ordinances limiting the construction of new homes in flood plains and to price the product accurately. Resolving shortcomings in many of these areas and streamlining the process would help, says Shorewood REALTOR® Karen Robertson.
Further, a McHenry County official says if the program isn’t renewed by Sept. 30, future home sales in flood prone areas could be delayed. Read the Tribune article, “If flood insurance program lapses, it’ll be ‘total chaos,’ warns official.”