Anyone else having problems getting flood insurance?

[DVCisME]

We were scheduled to close on a new house tomorrow, that is in a flood zone. I received a phone call Monday from the insurance company saying no one can purchase flood insurance. The reasoning she gave was that there is a bill that has to pass the Senate. Has anyone else heard/ have experience with this?
I called all the Senators in my state to no real avail. Senator Conners has been working hard on helping us. Then today I received a call back from Senator Lauetnberg's office and they said the bill was tied into an unemployment bill.
Can no one in the nation purchase flood insurance? And Senate is not back in session until April 12!!!!

 

[ilovejack02]

I just bought flood insurance on Friday. Don't have a clue what you are talking about .

Just talked to DH, Im sorry, he went purchased it on Thursday.

 

[DVCisME]

I just bought flood insurance on Friday. Don't have a clue what you are talking about .

Just talked to DH, Im sorry, he went purchased it on Thursday.

They said that the extension on flood insurance expired on March 31. So anone needing flood insurance after that is unable to get it.

I myself found this unbelievable. I called all over to different insurance companies and they all said the same. I had even given the check to the lady on Friday, she was not waiting on anything.

 

[golfgal]

You can't buy flood insurance when there is eminent danger of flooding. Since NJ has had so much snow and rain they put a moratorium on buying flood insurance, generally for 30 days AFTER the danger has passed. If your lender is REQUIRING flood insurance though, that is a different story. They may have to send proof that they are requiring you to buy that. Usually they have the dates listed on the FEMA website (which is who the flood insurance is actually through even though you can get it from your home insurance company).

There is also a 30 day waiting period for flood insurance to be effective so that is why they encourage people to buy it in Feb or so.

 

[ilovejack02]

They said that the extension on flood insurance expired on March 31. So anone needing flood insurance after that is unable to get it.

I myself found this unbelievable. I called all over to different insurance companies and they all said the same. I had even given the check to the lady on Friday, she was not waiting on anything.

HOLY MOLY , well really glad we got it last week. Is it just a New Jersey thing ? I have ignored the fact that we needed it for a year until mortgage company called me and told us they would buy it for 7,000 a year on a house that has never flooded in the 40 years since it has been built. It was rezoned about a year ago , I found it for 800.00 a year.

 

[mum4jenn]

They said that the extension on flood insurance expired on March 31. So anone needing flood insurance after that is unable to get it.

I myself found this unbelievable. I called all over to different insurance companies and they all said the same. I had even given the check to the lady on Friday, she was not waiting on anything.

Tomorrow is March 31st. You should have been able to get it.

 

[ilovejack02]

You can't buy flood insurance when there is eminent danger of flooding. Since NJ has had so much snow and rain they put a moratorium on buying flood insurance, generally for 30 days AFTER the danger has passed. If your lender is REQUIRING flood insurance though, that is a different story. They may have to send proof that they are requiring you to buy that. Usually they have the dates listed on the FEMA website (which is who the flood insurance is actually through even though you can get it from your home insurance company).

There is also a 30 day waiting period for flood insurance to be effective so that is why they encourage people to buy it in Feb or so.

Yes this is true, I didnt even think about that. I know about it from being in a hurricane area.

 

[DVCisME]

The most concerning thing to me was that the woman at the insurance company did not say anything until Monday. She just urged me to contact the Senators. I also do not understand what the flood insurance has to due with unemployment!?!
I am going to check out the FEMA website (right after bath time ), thank you!

 

[DVC-Don]

The Federal Flood Insurance program ended on March 28th and Congress has not extended it at this time.

From The Insurance Journal

As insurance and real estate agents and homeowners feared, Congress left Washington without extending the federal flood insurance program.

Congress adjourned until April 12 after failing to agree on an unemployment benefits bill that included a provision with an extension of the National Flood Insurance Program.

As a result, the federal flood insurance program's authority to write new policies ends on Sunday, March 28 at midnight. After that time, insurance agents will not be able to provide new or renewal flood insurance policies, which are required by lenders to close on some real estate sales.

.

 

[Where'sPiglet?]

I have seen what DVC-Don quoted. I've seen it in the news.

 

[momsully]

Here is info we are sending our clients on this:

As you may already know, Congress failed to renew the Federal Flood program. Since they are on recess until April 12th, no new flood policies (or increases in existing cover) can be issued until the bill is extended.

Renewals – It is important that you continue to pay premiums as outlined on the renewal invoice. Assuming that Congress extends the bill retroactively, and the carrier physically receives the premium as dictated by the renewal notice, there will be no gap in coverage. If Congress does not make coverage retroactive, the policy will be issued using the date when the bill is ultimately extended.

We will continue to monitor the status and keep you updated. For additional information, contact:

http://www.fema.gov/business/nfip/nfip-reauth.shtm

 

[DVCisME]

Here is info we are sending our clients on this:

As you may already know, Congress failed to renew the Federal Flood program. Since they are on recess until April 12th, no new flood policies (or increases in existing cover) can be issued until the bill is extended.

Renewals – It is important that you continue to pay premiums as outlined on the renewal invoice. Assuming that Congress extends the bill retroactively, and the carrier physically receives the premium as dictated by the renewal notice, there will be no gap in coverage. If Congress does not make coverage retroactive, the policy will be issued using the date when the bill is ultimately extended.

We will continue to monitor the status and keep you updated. For additional information, contact:

http://www.fema.gov/business/nfip/nfip-reauth.shtm

Thank you! It seems according to this information we should have coverage because they had our check on Friday and covereage stopped on Sunday. Is that correct?

 

[PixieTopaz]

We were scheduled to close on a new house tomorrow, that is in a flood zone. I received a phone call Monday from the insurance company saying no one can purchase flood insurance. Can no one in the nation purchase flood insurance? And Senate is not back in session until April 12!!!!

This is true for my friend who made the offer on the Townhouse. He can not get a quote-but his relator said if worst came to worse-he could 'take over" the policy of the person who is selling the place.

And what is REALLY bad is for First time homeowners there is a TIMELINE for closing to recieve your tax Credit!!!

 

[DVCisME]

We don't qualify for the first time home buyers credit, but the other credit. I am also concerned if the buyers want us out by a certain date.

 

[DVCisME]

Can you believe that the Senators are not even aware that no one can purchase flood insurance????

 

[Nancyg56]

Can you believe that the Senators are not even aware that no one can purchase flood insurance????

I absolutely can believe it.

 

[ilovejack02]

This is true for my friend who made the offer on the Townhouse. He can not get a quote-but his relator said if worst came to worse-he could 'take over" the policy of the person who is selling the place.

And what is REALLY bad is for First time homeowners there is a TIMELINE for closing to recieve your tax Credit!!!

This can be done , at least it could be done three years ago . THat is what we did when we bought my inlaws house, just took over their policy , but it wasnt mandatory for the neighborhood so we eventually dropped it. NOWW it is mandatory.

 

[Sarah_Rose]

Wow, I had no idea! We are closing on our house today (just hanging out on the DIS, waiting for my phone call saying that I can go pick up the keys...) and we purchased flood insurance on Thursday. Flood insurance isn't mandatory because the land that the house is on has been built up above the flood zone, but it is half a block from a major river, so... I prefer to live by the "better safe than sorry" mantra.

Hope everything gets worked out for you so you can close tomorrow!