Daily Real Estate News  |  September 26, 2007  |   Disaster Insurance Bill Takes Big Step Forward
Legislation that aims to ensure home owners in high-risk areas have access to affordable disaster insurance made notable progress Wednesday, winning passage from the U.S. House Financial Services Committee.

The NATIONAL ASSOCIATION OF REALTORSŪ says it strongly supports H.R. 3555 — also called the Homeowners Defense Act of 2007 — because the bill would provide support to the country’s insurance markets and protect consumers and commercial property owners who would otherwise be unable to afford disaster policies.

“The inability to obtain affordable insurance is a serious threat to the real estate market,” says NAR president Pat V. Combs. “A strong real estate market is central to a healthy economy, as we have clearly seen demonstrated these past few weeks.”

The Homeowners Defense Act, sponsored by U.S. Reps. Ron Klein (D-Fla.), and Tim Mahoney (D-Fla.), addresses many of NAR’s concerns by helping the private market work more effectively. It gives the states flexibility to assess and customize their programs based on the defined risk to their citizens.

NAR continues to encourage Congress to develop a comprehensive natural disaster policy to protect property owners and taxpayers from losses resulting from future natural catastrophes. Such a policy should recognize the respective responsibilities of property owners, private insurance markets, and all levels of government in preparing for and recovering from catastrophic events.

— REALTORŪ Magazine Online