With catastrophic floods occurring in many states and the threat of an active hurricane season, people may be looking for extra insurance protection. But they’re likely to find that premiums are pricier, and extra coverage is harder to get, than ever before. The National Flood Insurance Program (NFIP) in in lapse, and although the handful of private companies that issue flood insurance for high-end properties continue to do so, they can be expensive.

Congress’s failure to extend the flood insurance program is delaying an estimated 1,200 real-estate closings a day across the U.S., according to the National Association of Mutual Insurance Companies (NAMIC). Federal law requires homes with federally backed mortgages in flood-hazard areas to have flood insurance. The House has passed an extension bill, and federal officials say they believe Congress will reauthorize the program eventually. New policies would likely be retroactive—but there is a 30-day waiting period after a policy is approved before it takes effect. Insurance experts urge homeowners who need flood insurance to apply now despite the hiatus.

Insurance Gets Harder to Find (Wall Street Journal 6/19/10)

June 22, 2010