Daily Real Estate News  |  October 3, 2007  |   REALTORS® Seek Flood Insurance Program Expansion
In testimony this week before the Senate Banking Committee, the NATIONAL ASSOCIATION OF REALTORS® expressed support for reforming and expanding the National Flood Insurance Program.

The NFIP helps protect homeowners, renters and commercial property owners from losses sustained from flooding.

Since its creation, the NFIP has helped reduce the escalating costs of repairing flood-related damage to homes, buildings and contents in participating communities. “A strong real estate market is the linchpin of a healthy economy,” said NAR President Pat V. Combs, of Grand Rapids, Mich., and vice president of Coldwell Banker-AJS-Schmidt. “To ensure that real estate continues to be a good long-term investment and maintain vitality in the residential and commercial markets, certain safeguards must be in place, including federally backed flood insurance made available through the NFIP.”

The NFIP is a partnership between local, state and federal governments. It allows participating communities to purchase insurance as protection against flood losses in exchange for state and community floodplain management regulations that would reduce future flood damage. In exchange, the NFIP makes federally backed flood insurance available to homeowners, renters and business owners in these communities. More than 20,000 communities currently are participating in the NFIP.

Testifying on NAR’s behalf, 2006 CALIFORNIA ASSOCIATION OF REALTORS® President Vince Malta said, “The NFIP is a win-win in that it promotes responsibility by homeowners, the community and the government. Compliance with NFIP building standards resulted in nearly 80 percent less damage annually. In addition, the cost of flood damage was reduced by nearly $1 billion because communities are implementing sound floodplain management requirements and property owners are purchasing flood insurance.”

Source: NAR