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Congress has passed a bill that reauthorized the National Flood Insurance Program, (NFIP) for two more months.

This short-term reauthorization assures homeowners in flood-risk areas that they will have access to flood insurance needed for closing on new home purchases and for refinancing.

Congress will continue to debate how to restore financial stability to the National Flood Insurance Program. The NFIP was fiscally sound until it was overwhelmed by claims form Hurricane Katrina in 2005.

Lawmakers hope to come up with a long-term solution for the National Flood Insurance Program. In the meantime, reauthorization has been extended until July 31, 2012.

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