NAR: Extend flood home insurance program in live concerns

A recent hearing on Capitol Hill featured testimony from a real estate industry group about the importance of extending a national home insurance program for flood damage.A recent hearing on Capitol Hill featured testimony from a real estate industry group about the importance of extending a national home insurance program for flood damage.

The National Association of Realtors said the federal government should approve a five-year extension of the National Flood Insurance Program, which is administered by the Federal Emergency Management Agency. Congress recently approved prolonging the NFIP until May 31 of this year.

Maurice Veissi, first vice president with the NAR, told the House Subcommittee on Housing and Community Opportunity that extending the program on a montly basis is not an efficient way to administer it.

"And it creates financial and real estate market uncertainty for millions of taxpayers, financial market lenders, and insurers who can’t, or won’t, operate under these uncertainties," Veissi said.

Although standard home insurance policies cover storm issues, consumers have to purchase a separate flood policy to be protected against flood damage. In fact, some lenders may require consumers get flood insurance protection if their property is in an area that faces flood dangers.

If Congress allows the NFIP to expire again, new policies will not be allowed, nor will extensions to existing policies.

The National Association of Realtors said the federal government should approve a five-year extension of the National Flood Insurance Program, which is administered by the Federal Emergency Management Agency. Congress recently approved prolonging the NFIP until May 31 of this year.

Maurice Veissi, first vice president with the NAR, told the House Subcommittee on Housing and Community Opportunity that extending the program on a montly basis is not an efficient way to administer it.

"And it creates financial and real estate market uncertainty for millions of taxpayers, financial market lenders, and insurers who can’t, or won’t, operate under these uncertainties," Veissi said.

Although standard home insurance policies cover storm issues, consumers have to purchase a separate flood policy to be protected against flood damage. In fact, some lenders may require consumers get flood insurance protection if their property is in an area that faces flood dangers.

If Congress allows the NFIP to expire again, new policies will not be allowed, nor will extensions to existing policies.
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