Flood Insurance Reform Will Be a Top Priority in 2014

Flood Insurance Reform Will Be a Top Priority in 2014

by: Cathy Armstrong / December 28, 2013

 

The Problem: Congress provided a five-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 Solution: A four-year time-out. Congress has legislation in the House, H.R. 3370 and Senate, S. 1610, to delay changes to the NFIP. These bills would:

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

In 2014 the National Association of REALTORS® will make flood insurance a top priority.