Win for Home Owners: Congress Reauthorizes Flood Insurance for 5 Years

Most of you may know by now that we have been reporting on what seemed to be an endless string of short term extensions over the last two years for the Flood Insurance Program. Congress has finally come together in support of homeowners and they have approved the five year extension, along with some upgrades of this much needed program. The article below has some very good information which I recommend you look over.

Article From HouseLogic.com

By: Dona DeZube
Published: July 02, 2012

Feds promise you access to affordable flood insurance through Sept. 30, 2017. And that’s an important win for the housing market and broader economy. Find out why.

Congress last week agreed to continue the National Flood Insurance Program for the next five years, saving a vital program that’s the sole source of affordable flood insurance for many home owners.

NFIP protects property owners in more than 21,000 communities where you can’t get a federally related mortgage unless you purchase flood insurance (http://www.houselogic.com/home-advice/disaster-insurance/is-flood-insurance-worth-it/).

More than 5.6 million property owners use the NFIP program. That’s not surprising if you know that flood-related disasters (http://www.houselogic.com/protect-your-home/floods/) claim more lives and damage more property than any other type of natural disaster. Floods are also the natural disaster most likely to occur because they happen anywhere rain or snow falls – including every state in the U.S.

Private market insurance companies offer flood insurance on high-value homes, but not policies for the typical American home. Federal flood insurance saves money even for those who don’t need it because without it, we’d all pay for more extensive, expensive federal disaster relief for flood victims.

Long-term flood insurance security bolsters economy

In the past few years, the program has expired twice and was extended for short time periods 17 times as Washington worked on solutions.

During one of those lapses in June of 2010, more than 40,000 home sales were delayed or cancelled because flood insurance wasn’t available, according to data collected by the NATIONAL ASSOCIATION OF REALTORS®. That’s why NAR repeatedly asked Congress over the past few years to approve a long-term reauthorization of the program.

Last Friday, Congress listened and passed the Biggert-Waters Flood Insurance Reform Act of 2012 as a part of H.R. 4348, the Surface Transportation Conference Report. President Obama has said he’ll sign off on the bill later this week.

A five-year extension means home owners and home buyers will have reliable access to affordable flood insurance and that less taxpayer money will have to go toward federal disaster insurance over the next few years.

Just as uncertainty about the future of flood insurance undermined home buyer and investor confidence in the 2010 housing market, the passage of this five-year extension should help bolster economic confidence.

And that’s a win for all of us home owners and home owners to be.

 

About gvenice

I have over 25 years of electrical engineering and business management experience. I previously owned and managed a multi million dollar engineering firm. My work took me all over the globe, managing the construction of manufacturing plants where I built a reputation of providing superior service, getting projects done on time and within or under budget. My dedication to the fine details and logical approach to accomplishing tasks provide a huge benefit to my Real Estate clients. After selling my business and retiring to this area, I found a new passion in the Real Estate business and I bring to this business the same level of professional skill and conduct that has made mr successful in the past. My global exposure and extensive travel are also an asset when dealing with a customer base that is located worldwide. An avid boater, I have a thourough understanding of the waterways of East Tennessee and the intricacies involved in dealing with the TVA and the Army Corps of Engineers.
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