Realtor Group pushing for “fix” of Flood Insurance Problems

flash_flood_dorchester-300x175As a result of a new law, called the Biggert-Waters Insurance Reform Act of 2012, millions of homeowners nationwide either have to buy flood insurance for the first time or pay a significantly higher premium on their existing policies.

The government also has been revising its flood zone maps and reassessing the level of flood risk for various areas.

 

Many Huntington Beach and Orange County property owners are affected by the law, and the law has some problems according to the National Association of Realtors (NAR):

 

Congress provided a 5-year reauthorization of the National Flood Insurance Program (NFIP), but severe implementation problems threaten to undermine real estate transactions where flood insurance is required to obtain a mortgage.

 

New NFIP rate structures have caused serious confusion and hardship for property owners.

 

The Federal Emergency Management Agency (FEMA) continues to delay and miss deadlines.

 

The legally required transition to true risk rates has plagued consumers with increases in rates beyond what anyone imagined possible.

 

The NAR has proposed a solution:

 

A four-year time-out. Congress has legislation in both the House and Senate to delay changes to the NFIP. And, they have requested that you tell your Member of Congress and your Senators to bring these bills to a floor vote IMMEDIATELY:

 

H.R. 3370 Homeowner Flood Insurance Affordability Act of 2013 S. 1610 Homeowner Flood Insurance Affordability Act of 2013

 

The bills would prudently defer rate increases until FEMA completes the affordability study mandated by law,  the bills would create a system for targeted rate relief, and the bills would create an office of the Advocate for flood insurance rate and mapping concerns.

 

I will be watching this issue and will bring you updates as I learn more.

 

 

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