NAR to Press Congress for Immediate Action on Flood Insurance Renewal

The National Association of Realtors® said today that it will continue to press Congress for speedy action to renew authority for the Federal Emergency Management Agency to issue flood insurance under the National Flood Insurance Program that expired March 28.

Congress is on its spring recess and will return April 12.

Flood insurance is required by law for home sales mortgages on properties located in the 100-year floodplain areas, which are left unprotected by this lack of congressional action. Until Congress renews this program, worthy buyers will be left without access to mortgages,” said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Associate in Tucson, Ariz. “In addition, given the many challenges financial and real estate markets are facing, now is not the time to create another, but avoidable, obstacle to real estate transactions.”

Golder cited the recent heavy floods in Rhode Island and the near miss in North Dakota last week when the Red River finally crested just below flood stage. She also said that home buyers and property homeowners in those states and others, such as Florida, still need adequate protection from flood damages.

Floods and flash floods happen in all 50 states and are the No. 1 natural disaster in the U.S., but most property casualty homeowners insurance policies do not cover flooding. According to FEMA, more than 5 million people currently hold flood insurance policies in more than 20,000 communities across the country. Since 1978, the NFIP has paid out $31.4 billion for flood insurance claims and related costs.

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