National Flood Insurance Program: Political Advocacy
The National Association of REALTORS® supports efforts to reauthorize the National Flood Insurance Program (NFIP) to issue flood insurance, which is required in 21,000 communities nationwide. NAR endorses:
- Efforts to renew and strengthen the long-term viability of the NFIP for at least five years;
- Improving the accuracy of flood insurance rate maps used to determine which properties require flood insurance
- Continued inclusion of comprehensive coverage for residences including rental properties and second homes; and
- Reforms that provide "full risk" premiums for most repetitive loss structures in many states.
For the past several years, Congress has been approving short-term extensions of the NFIP's authority to issue flood insurance policies while they continue to debate long-term fiscal reforms to the program. Twice in 2010 Congress allowed the NFIP to lapse for multiple weeks at a time, which halted tens of thousands of real estate transactions in areas where homebuyers are required to purchase flood insurance to obtain a mortgage.
Since then, REALTORS'® actions-—including testifying before Congress, issuing Calls for Action, and conducting a "fly-in" to Washington, D.C., to express concerns—-have prevented further lapses.
On Dec. 17, 2011, Congress extended National Flood Insurance Program (NFIP) authority through May 31, 2012. This latest extension was a part of H.R. 2055, the so-called megabus conference report combining the remaining nine appropriations bills to fund the federal government for FY2012. NAR is urging Congress to use the additional time to complete work on a 5-year NFIP re-authorization bill (H.R. 1309) to provide certainty and avoid further disruption to real estate markets.
