Talk about terrible timing - funds for the National Flood Insurance Program have lapsed just as the Federal Emergency Management Agency is making the rounds in North Dakota to encourage homeowners to purchase that very product.

FEMA, along with the N.D. Department of Emergency Services, is hosting a town hall meeting this evening from 6:30 to 8 p.m. in Room 201 of the Minot Auditorium.

National flood insurance has been billed as the primary topic for the Minot meeting. The problem is, funding for the program lapsed Sunday at midnight. Re-authorization for government flood insurance is attached to an unemployment benefits bill that has been delayed in the Senate.

According to Cecily Fong, public information officer for the N.D. Department of Emergency Services, her office received a memo stating that issuance of new policies, increasing coverage on exisiting policies and the issuing of renewal policies has been halted. However, the delay is expected to be temporary.

"The most important message that we need to tell people is that it is anticipated that funding will be coming forth quickly and that the program will be up and running very soon," said Fong.

According to Fong, homeowners who apply for flood insurance during the funding lapse will begin their mandatory 30 day waiting period required for the policy to take effect at the moment of application.

Tina Olson, Bremer Insurance of Minot, said a similar situation happened last year. She also encourages those who wish to purchase flood insurance to go ahead and do so.

"We've been notified to go ahead and sell the product while waiting for the program to be funded again. We just can't issue the policy but they'll honor the date we submit it for the waiting period," said Olson.

Derek Jensen, external affairs officer in FEMA's Denver office, called the timing of the lapse "unfortunate" but said it was not a big concern at this time.

"People essentially can't buy a new policy until funding is authorized. It has happened in the past and is typically re-authorized fairly quickly," said Jensen. "Obviously, the sooner the better. Still, we encourage those interested to get in touch with their insurance agent to start the process. That way they'll be that much further ahead when funding is authorized."

A lack of flood insurance coverage has the potential to delay home closings but, at least to date, that has not become a problem in Minot. A spokesperson for Minot Guaranty & Escrow, a firm that handles home closures, said the lapse in funding had not caused any delays in home loan closings of which they were aware.

If, for some unforseen reason, Congress does not authorize additional funding for National Flood Insurance, problems will likely develop for anxious home owners.

"If it drags on, and people are very conscious of the flood situation in our state, and there's no one to write a policy, it could cause a panic," said Tom Zimmerman, American Family Insurance agent in Minot.

In addition to flood insurance, other topics on the agenda for tonight's meeting include the 2010 flood outlook and flood preparation. The meeting is open to the public. A similar meeting is being held tonight in Grand Forks.