KEY FLOOD INSURANCE LEGISLATION NEEDS TO MOVE FORWARD

The National Association of Realtors® today* said that significant improvements to the “21^st Century Flood Reform Act,” key legislation aimed at  strengthening and reauthorizing the National Flood Insurance Program, have cleared the way for endorsement of the bill.  The current program is due to expire September 30, 2017.  Among the changes, Realtors® support the House Financial Services Committee’s commitment to retaining “grandfathering” – a policy that protects homeowners from significant rate increases when a flood map changes.

           

The most recent draft will also limit proposed increases to fees and rate hikes that policyholders faced under previous iterations of the legislation. Earlier versions of the legislation included more dramatic cost increases for homeowners and eliminated grandfathering protections beginning in 2021.

            

NAR President William E. Brown, stated that “the changes to the 21stCentury Flood Reform Act will help give certainty to homeowners who have brought their property to code and have done their part to protect it against flood risk. It’s a fair and reasonable approach that recognizes the need for accessible, affordable flood insurance, while taking us one step closer towards reauthorization.

        

 “This legislation protects taxpayers, as well as homeowners, which is no easy task. The September 30th  reauthorization deadline still looms in front of us, and Realtors® are eager to see this legislation progress quickly. Leaders on both sides of the aisle are well aware that this issue touches 22,000 communities – in every state, both coastal and inland. We’re grateful for the committee’s support and look forward to their continued efforts on behalf of homeowners.”

          

  Flood insurance is a Nationally funded program, administered by FEMA. If you have flood insurance, especially if you have had it for a number of years,  don’t cancel it  - because you are selling your home, or you no longer have a bank requiring you to hold flood insurance - before you understand the ramifications. “Grandfathering” protects your rate and is an asset that may be transferable to a buyer.  It may also make a significant difference in flood insurance cost to a new owner.  So check with your insurance broker or contact FEMA.  

*Source: The National Association of Realtors®, July 21, 2017, Press Release, “ Realtors®, House Financial Services Committee Reach Agreement to Move Key Flood Insurance Legislation Forward”.  

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