Daily Real Estate News  |  March 28, 2007  |   NAR Advocates for a Natural Disaster Policy
The NATIONAL ASSOCIATION OF REALTORSŪ is calling upon Congress to act now to establish a forward-looking and comprehensive natural disaster policy that includes disaster preparedness and encourages personal responsibility.

The policy should recognize that property owners, private insurance markets, and all levels of government must work together to make property insurance available and affordable, especially in disaster-prone areas, NAR says.

“To maintain a strong economy, the vitality of residential and commercial real estate must be safeguarded,” testified Gary Thomas, CEO of RE/MAX Real Estate Services, who spoke on behalf of NAR at a hearing held by the U.S. House Subcommittee on Housing and Community Opportunity.

Affordable Insurance Needed

NAR pledged to work with Chairwoman Maxine Waters (D-Calif.) and the full Committee on Financial Services to help Congress craft a national natural disaster plan that would include accessible and affordable insurance, improved preparedness, and thorough planning for recovery efforts.

In written testimony, NAR emphasized the importance of insurance to finance the purchase of real estate. “The inability to obtain affordable insurance is a serious threat to residential real estate, impacting the purchase of single family homes, condos, co-operatives, and rental units,” Thomas testified. “The cost of owning a home is directly tied to insurance costs, and it affects rental prices as well.”

Natural Disaster Plan a Priority

NAR has been an active proponent for the creation of comprehensive federal natural disaster legislation. Last September, NAR hosted a Federal Natural Disaster Policy Symposium, where attendees from across the country reiterated that natural disasters are a national problem and that state resources are not sufficient to deal with such “mega-catastrophes.”

“Ensuring such a plan is adopted is a top priority for NAR,” Thomas said. “NAR stands ready to work with Congress on this important issue.”

Read the full testimony at REALTOR.org.

— REALTORŪ Magazine Online