Recently, officials from the National Association of Home Builders issued the group’s support for an extension that would keep the federally backed National Flood Insurance Program active. The discussed extension for the NFIP would be for five years.
The vice chairman of the NAHB, Barry Rutenberg, speaking before the Senate Banking Committee recently, expressed his support for the program. He also expressed that continuing to have short-term extensions for the NFIP causes uncertainty for its future, which can lead to problems. Thus, a longer extension is necessary.
“Unfortunately during this latest interruption, many home buyers faced delayed or cancelled closings due to the inability to obtain NFIP insurance for a mortgage,” said Rutenberg. “In other instances, builders themselves were forced to halt or postpone construction on a new home due to the lack of flood insurance approval, adding unneeded delay and job loss.”
Rutenberg further stated that a long-term extension will ensure the system operates smoothly.
The NAHB’s support for the program highlights the importance of having flood insurance in place for businesses nationwide. As witnessed by recent natural disasters, floods can be damaging. Thus, business owners in higher-risk areas should invest in the insurance, lest they fall victim to crippling damages.