REALTORS® are reporting dramatically rising flood insurance premiums because of recent changes to the National Flood insurance Program. But while some home owners could see big increases in their costs, the changes are likely to be less dramatic for many — and some increases can be reduced by taking steps to mitigate flood risk, federal officials and private-sector experts said at the REALTORS® Conference & Expo.
Under reforms enacted last year, certain categories of property whose owners have been paying subsidized premiums will see those subsidies phased out, requiring owners to pay the full actuarial value of their insurance. The changes effect less than 20 percent of the 5.6 million owners whose properties have federal flood insurance, said Ed Connor, a deputy associate administrator for the Federal Emergency Management Agency.
Meanwhile, NAR is working with lawmakers in Congress to delay implementation of some of the subsidy phase-outs, including for the purchase of properties. Under NAR-backed legislation pending in both houses, the delay would last until FEMA completes a study it’s required to give Congress on the impact the phase-out will have on housing affordability. The bill would also create an advocate to investigate flood mapping and other concerns, and institute a regulatory solution.
More at source: Rob Freedman, REALTOR® Magazine