From the Desk of Joe Kendall, Broker Associate with Sandals Realty
Flood insurance expired at midnight Monday May 31, 2010.
Congress has a number of bills that would have extended the National Flood Insurance Program (NFIP) beyond it's pre-set deadline of Monday at midnight, but the National Association of REALTORS® (NAR) are stating this action is unlikely to take place. Because the government has not made it a priority
as of today June 1st 2010 the government flood insurance program ( NFIP ) no longer has the statutory authority to issue new or renewal policies unless Congress reauthorizes the program. This does not affect existing policies, renewal policies within a 30-day grace period, or policies purchased prior to the program's lapse.
It will impact you if your are buying a waterfront home in a flood-zone if you are relying on a mortgage to close your home purchase.
Options during a release of government coverage.
If you are buying a waterfront property you can "assume" the seller's existing flood insurance policy. For this to work, the seller must have coverage and be willing to transfer it. More info: flood insurance policy assumption
There are a few private companies that also offer flood insurance Lloyd's of London, Chubb and AIG. However, these companies issue only a limited number of policies and without federal backing. You will have to call and ask about rates. I can provide you witha couple of sample address so you can get a idea of costs based on different locations.
Secondary lenders that purchase mortgages have their own guidelines on a flood insurance lapse. Please refer to your loan officer or banker for their most updated information regarding requirement to close a waterfront home in southwest Florida.
Please call or email me with any questions .
Best regards
Joe Kendall , Broker Associate Sandals Realty
Phone 239-560-0726 email joek4realestate@aol.com
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Joe Kendall, Broker Associate
Sandals Realty, Fort Myers & Naples Florida.
Waterfront, Residential Communities, Short Sale Expert
Direct Line/Cell Phone 239-560-0726
Joe's Email can be accessed by clicking here
