Congress, for the third time this year, allowed the National Flood Insurance Program to expire on May 31, 2010.

During the Memorial Day congressional recess, NAR will launch an all-member Call for Action to urge immediate action on a lasting NFIP extension. Additional, information regarding NAR's policy position are available at www.realtor.org.

After May 31, the NFIP will not have the statutory authority to issue new or renewal policies until Congress reauthorizes the program. This will not affect existing policies, renewal policies within a 30-day grace period, or policies purchased prior to the program's lapse. Also, FEMA allows buyers to "assume" the seller's existing policy without having to re-issue it (http://ping.fm/6ZhdF). The purchase requirement for flood insurance may be met with non-NFIP policies; for instance, Lloyd's of London, Chubb and AIG have offered such insurance, but it can be very expensive and is limited to a certain number of states, with other conditions.