Print Page | Contact Us | Sign In
News & Press: Legislative

Flood Insurance Program To Expire Sept. 30th

Thursday, August 24, 2017   (0 Comments)
Posted by: Maria Brogan
Share |

The National Association of REALTORS (NAR) needs your help to drive messages to Members of Congress urging them to support H.R. 2874, “The 21st Century Flood Reform Act." 

H.R. 2874 reauthorizes the NFIP and makes a number of critical improvements to the NFIP including increased funds for mitigation activities, caps on overall premium increases, improved claim and mapping processes, as well as removing hurdles for more private market participation in the flood insurance market. Reauthorization of the NFIP will help over 5 million homeowners in 22,000 communities around the country, so it is critical Congress acts now.

If Congress fails to take action to reauthorize the NFIP, it will expire by September 30, 2017.

 

 

What To Tell Your Representatives And Senators

Long-term Reauthorization Is Critical

  • Don’t let NFIP lapse.

  • Each lapse costs 40,000 property sales per month.

  • Without reauthorization, NFIP cannot issue or renew policies in 22,000 communities where flood insurance is required for a mortgage.

 

Accurate Flood Maps Are Essential

  • NFIP should use modern mapping technology to produce building-specific
    risk assessments.

  • Currently, property owners bear the burden of amending the maps to remove low-risk buildings from the floodplain.

  • Map amendments require property owners to buy 25,000 land surveys each year at $500 each.

  • The current method of flood mapping and amendment is inefficient when states are using light detection and ranging (LiDAR) to collect the data for whole neighborhoods at once.

 

Risk Mitigation Keeps Rates Affordable

  • The best way to keep NFIP rates reasonable is to reduce the risk.

  • Elevating a property by two feet can cut flood insurance premiums by as
    much as two-thirds.

  • U.S. government spends $1.4 billion a year on grants to property owners to repair flood damage. 

  • Mitigating, elevating or relocating these properties would save taxpayers $4 for every $1 spent.

  • Currently, property owners cannot access mitigation grant dollars until after the property floods despite it being more cost effective to elevate or relocate beforehand.

 

Private Market Options Must Be Included

  • Attach the "Flood Insurance Market Parity and Modernization Act" (HR. 1422/S. 563) to the NFIP Reauthorization Package; this bill was unanimously adopted (419-0) by the House last year.

  • NFIP premiums are based on national averages, so half of policyholders pay too much and half pay too little in premiums.

  • Enabling consumers to meet federal requirements with a private plan offers an alternative to overpriced NFIP policies.

  • There is a considerable and growing private market that is offering better coverage at a lower cost than the NFIP.


 

The Northeast Association of REALTORS®
6 Lyberty Way, Suite 204
Westford, MA 01886

Phone: 978-577-6138
Fax: 978-577-6156