NAR Backs New Items in Flood Insurance Bill

July 21, 2017

The National Association of REALTORS® supported lawmakers’ move this week to propose flood insurance legislation that would help protect homeowners from significant rate increases when a flood map changes. 

The House Financial Services Committee has said that it plans to retain “grandfathering” in a policy to protect owners from flood insurance hikes within the 21st Century Flood Reform Act, which is aimed at reauthorizing the National Flood Insurance Program. Its a move that NAR says it strongly supports. 

The most recent draft of the bill will also limit proposed increases to fees and rate hikes that policyholders faced under previous iterations of the legislation. In an earlier version of the bill, a significant cost increase for homeowners had been proposed as well as the elimination of the grandfather protections, which would have started in 2021. 

“House Financial Services Committee Chairman Jeb Hensarling (R-Texas), as well as Subcommittee on Housing and Insurance Chairman Sean Duffy (R-Wis.), deserve high praise for working with REALTORS® to improve this legislation,” says NAR President William E. Brown. “The changes to the 21st Century 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.”

The Sept. 30 reauthorization deadline still looms, Brown adds. “Leaders on both sides of the aisle are well aware that this issue touches 22,000 communities in every state, both coastal and inland.”

Source: National Association of REALTORS(R)