Flood Program agreement will benefit homeowners

Improvements to the National Flood Insurance Program have been welcomed by the bodies representing home builders and real estate agents

Flood Program agreement will benefit homeowners
Improvements to the National Flood Insurance Program have been welcomed by the bodies representing home builders and real estate agents.

The proposed reforms will limit the costs to home builders and homeowners and National Association of Realtors president William E. Brown praised the collaborative approach from the House Financial Services Committee, who worked with NAR and the National Association of Home Builders.

“The changes to the 21stCentury Flood Reform Act will help give certainty to homeowners who have brought their property to code and have done their part to protect it against flood risk,” Brown said. “It’s a fair and reasonable approach that recognizes the need for accessible, affordable flood insurance, while taking us one step closer towards reauthorization.”

The National Association of Home Builders also praised the committee and urged the House to pass the bill quickly as the NFIP is set to expire on September 30.

“As a builder who knows first-hand how flood insurance rate increases can hurt home owners, businesses and communities, I am pleased that the House Financial Services Committee has made such important progress on reauthorizing the NFIP,” said Randy Noel, a home builder from LaPlace, La. and NAHB first vice chairman.

The five-year reauthorization of the NFIP:
  • Eliminates a provision that would have ended NFIP coverage of new homes constructed in the 100-year floodplain;
  • Ensures that “grandfathering” will remain available for all policyholders if their risk changes, which will enable home owners to have continued access to affordable flood insurance; and
  • Sustains affordability by raising the annual premium floor for rate hikes from its current 5 percent level to 6.5 percent instead of the proposed rate of 8 percent.
“This bill is critical to allow more borrowers to be covered by flood insurance and ensure that we can continue to provide safe and affordable housing in Louisiana and across the nation,” added Noel.

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