Flood Insurance Renewal Heads to President Bush

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Congress already passes bills
RISMEDIA, June 23-The U.S. House of Representatives has approved legislation that reauthorizes the National Flood Insurance Program (NFIP) through 2008.

The Senate passed the identical bill, known as the Flood Insurance Reform Act of 2004, S. 2238, last week, so the legislation now goes to the president for his signature.

The National Association of Realtors (NAR) said the bill establishes a pilot program that will increase flood insurance premiums for owners of repeatedly flooded properties who refuse government offers of mitigation assistance. The pilot program focuses on the most severe repetitive-loss properties and provides an appeals process to prevent unfairness and injustice. The legislation also includes reforms that will ensure that consumers are fully aware of what’s covered under their flood insurance policies.

The federal flood insurance program, which provides more than 90 percent of flood insurance policies in the United States, was set to expire June 30. Flood insurance is usually required by lenders for loans on commercial and residential properties in areas where flooding is common. Administered by the Federal Emergency Management Agency, the NFIP was created in 1968 to help people in areas vulnerable to floods obtain reasonably priced flood insurance.

“Realtors applaud Congress for passing legislation that reauthorizes the federal flood insurance program, a vital program that provides flood insurance to folks who might not otherwise be able to find affordable coverage,” said NAR President Walt McDonald, broker-owner of Walt McDonald Real Estate in Riverside, Calif. “We also support the bill’s efforts to improve the program’s financial soundness by shifting more of the burden of recovery costs to property owners who choose to remain vulnerable to repetitive flood damage.”

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