AnalysisIndustry News

Real estate industry welcomes flood insurance extension, reform

House passes revised version of National Flood Insurance Program that extends it for five years, carves out exemptions

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With a three-month extension of the National Flood Insurance Program set to expire in less than a month, the real estate industry on Tuesday cheered the passage of new House legislation that would reauthorize and reform the ailing 49-year-old insurance plan. Sponsored by Wisconsin Rep. Sean Duffy, the “21st Century Flood Reform Act” passed 237-189 despite opposition from Democrats and officials on both sides of the aisle representing coastal districts, who claim premiums on high-risk properties could skyrocket. Real estate trade associations, however, unequivocally came out in support of the bill, citing significant property sales declines during periods in which the federal program has expired. A competing bill in the Senate, which would pause interest fees that the program pays on its debt, is expected to be introduced before the program is slated to expire on December 8. “Realtors know first-hand what happens when the NFIP expires, and it isn’t good for consumers, b...