Flood Insurance Update: How does it impact local real estate?
May 2014
By Kim McClellan, Government Affairs Director the passage of the law as bringing much-needed stability to the marketplace, an unknown threat loomed.
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n 2012, the Biggert –Waters Flood Insurance Reform Act was passed to reauthorize the National Flood Insurance Program (NFIP) for 5 years. This was a huge victory for REALTORS® across the country since many transactions were delayed or lost entirely due to the frequent lapses in the program. While NAR heralded
As the law began to be implemented, homeowners and prospective buyers began reporting massive increases in flood insurance rates. The law recognized that the NFIP was in financial trouble after years of severe storms and massive payouts by requiring an end to subsidized rates over a period of years. However, when the law was actually being implemented, many insurance companies were requiring an annual premium equal to 20% of the replacement cost of the structure. If the
home was valued at $200,000, a homeowner seeking a flood insurance policy would be required to pay $40,000 in annual premiums. REALTORS® and homeowners quickly realized that this was a growing issue and would dramatically impact the marketability of homes and other properties within flood plains. Continued on pg 6
Searching for leaders: Nominating Committee accepting applications for 2015 Board of Directors
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he Nominating Committee chaired by 2013 President Suzanne Brady invites the membership to consider being interviewed for a spot on the election slate. Electronic voting will be available in early September and will continue through September 17 at 1 pm. A polling booth will be set up at the FAAR Expo.Questions concerning the responsibilities
of holding an office should be directed to Pat Breme(pbreme@ faarmembers.com) or Suzanne Brady (smbrady@mris.com) The Candidate Profile and the Code of Conduct forms are on www.faarmembers.com on the home page. Both need to be filled out and sent to Pat Breme (pbreme@faarmembers.com), by 5 pm on June 6.
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