With the passage of the Homeowner Flood Insurance Affordability Act, NAR wanted to add to their support of the legislation with four other provisions, focused on further assisting homeowners and home sellers.
The recent legislation allows realtors to offer relief from rate shocks and inaccurate quotes based on flood potential of the area around their property. Adding to this relief, the National Association of Realtors proposed 4 added items to FEMA.
According to NAR, the 4 propositions include:
- Assume Policies of Property Sellers: For home buyers, in lieu of starting new with flood insurance rates, they will have the option to assume the policy rates of the home sellers.
- Deliver Refunds: For homeowners who paid their full premiums between July 2012 and this past April when the new legislation was passed, they will receive a refund for any overpayments.
- Establish Flood Insurance Advocate: To answer potential questions of new property owners or even established homeowners about their flood risk and coverage, a Flood Insurance Advocate was proposed.
- Create Technical Mapping Advisory Council: The final provision for the flood legislation was the Technical Mapping Advisory Council, to keep accurate flood maps.
The Homeowner Flood Insurance Affordability Act is a great first step to the benefit of homeowners and home sellers who live in flood-prone areas. By proposing the above addendums to this legislation, NAR hopes to reduce the overall effects of flood insurance rates on real estate transactions, making it easier for people to buy and sell their homes, and decreasing the potential for flood insurance to slow the momentum in the housing market in flood regions.
Specifically, offering stable-rates based on existing policies as well as refunds for overpayments, the financial burden that is often a deterrent is relieved. Additionally, establishing accurate flood mapping practices and assigning an advocate to work in a service-relationship with homeowners or sellers who have questions about flood insurance will ensure the most educated consumer.
If you live in a flood-prone area and need to know more about the new legislation, as well as, how these proposed additions could help you with your flood insurance rates, let us know as we can recommend an insurance professional to you. Protecting your home shouldn’t put so much burden on you financially that you can’t live in it.
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