Congress has recently approved a 5-year extension of the National Flood Insurance Program, which covers the cost of flood damage that few insurers offer. The NFIP identifies flood risks and provides financial assistance to those affected by flood disasters, and also helps lessen the financial burden on businesses, individuals, and the government.

Without the renewal of the program, potential homeowners in flood-susceptible areas would not be able to close on mortgages or refinance loans because of the lack of insurance. The bill will also allow The Federal Emergency Management Agency to buy private reinsurance to support the program, allowing the FEMA to reduce their dependence on Treasury loans that previously helped fund the program.

Additionally, the program will include important provisions and flood maps that are used to inform property owners and officials of possible flood risks and designated flood zones. The approved plan will also see more certainty in the recovery of Florida’s real estate economy. Lapses in the program in 2010 allowed roughly 1,400 home sales a day to be cancelled.

Real Estate Closing Solutions of Orlando is dedicated to helping you better understand the resources and costs of entering into a new real estate transaction. Contact our real estate professionals in Orlando and we will provide you with a personalized service that will leave you satisfied and well informed on the processes of buying, selling and financing real estate. Call 407-615-8550 today to learn more!