NAR Insurance Task Force Final Report/Recommendations - Introduction

 
Introduction

Beginning in the summer of 2002, property casualty insurance became increasingly more expensive and more difficult to obtain in the conventional and government assisted residential and the commercial markets.

The availability and affordability of property and casualty insurance is essential to the real estate market's functioning. Property casualty coverage is an underwriting requirement for conventional, government-assisted and commercial mortgages. Without insurance, lenders will not lend; without mortgages the great majority of sales transactions cannot be consummated. Without continuing insurance coverage, existing homeowners cannot remain current on their mortgage obligations and may find themselves subject to expensive lender forced-place coverage or possibly foreclosure.

Recognizing the major challenge that finding affordable and adequate insurance has become for REALTORS®, the NAR leadership created an Insurance Task Force in September, 2002. Comprised of REALTORS® representing all specialties, the Task Force was charged with assessing state of affairs, exploring solutions and developing an appropriate role for NAR to help its state associations address what is now a serious availability/affordability problem.

The task force has met with the major insurers, the insurance trade groups, insurance regulators, the reinsurance trades, the insurance brokerage trades as well as consumer groups.


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