Hurricane Katrina. Hurricane Sandy. Bad or old-out dated flood maps. And a lot of other issues came to a head recently for National Flood Insurance Program. Without NFIP, there is almost no private flood insurance available. Let’s take one small part of this problem: maps.
The flood maps have to be updated and kept current because the flood plains are not static, they change. Some of the existing flood maps are 15-20 years old. You may find that your property is now located in a flood zone. What happens if, God forbid, you have flood damage and have not updated your insurance? Even without a claim, what will that do to your insurance premium? What will that do to your property value? Some predict that the impact on property values and the cost of premiums will force some home owners into foreclosure. A lender will require flood insurance on the home, if the premium is so outrageous that no one will pay it, the property is not going to be worth much.
There are too many unanswered questions. The laws need to be updated but I support the NAR in asking to delay parts of Biggert-Waters legislation and do a comprehensive affordability study on the costs of this law. For more:
Thanks for reading,