May 25, 2018

NAR Urges Home Owner Relief on Flood Insurance Spikes

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NAR Urges Home Owner Relief on Flood Insurance Spikes

Home owners across the country are facing sudden, unexpected increases to their flood insurance premiums, and the National Association of REALTORS® is urging lawmakers to take immediate action to provide relief. 

Flood insurance premiums are rising across the nation due to the Biggert-Waters Flood Insurance Reform Act, which is rolling out in stages. The first part of the law took effect Oct. 1 and removed flood insurance subsidies for more than a million home owners nationwide. Some home owners have been shocked at high premium increases and some are blaming it for decreasing their home’s value. 

“We need a ‘time out’ from the implementation of the law,” 2012 NAR President Moe Veissi testified to the U.S. House Financial Services Subcommittee on Housing and Insurance this week. “No one could have imagined rate increases of this magnitude. During the debate over Biggert-Waters, the prevailing wisdom was that actuarial rates would range from hundreds to thousands of dollars, not tens of thousands of dollars or the 1,000 percent rate-increase shocks that we are learning about now.”

NAR has strongly supported maintaining access to affordable flood insurance. It is urging Congress to pass the Homeowner Flood Insurance Affordability Act, bipartisan legislation that would delay further implementation of the major rate changes until FEMA can complete an affordability study that is required under Biggert-Waters. NAR is also urging lawmakers to create an office to investigate flood insurance rate increases. 

NAR issued a call for action this week to its members, urging REALTORS® to contact their lawmakers to support the Homeowner Flood Insurance Affordability Act.

Source: National Association of REALTORS®

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