In November, it was brought to the attention that many homeowners in East Contra Costa County and around the County will experience an increase in their flood insurance premiums due to legislation passed last year. Now, Realtors are fighting back to protect homeowners.
A few weeks back, we shared how a some homeowners experienced flood insurance premium increases of over $15,000 depending on where they live in the country—locally, a Brentwood family experienced a $2,000 a year increase while a home on Bethel Island increased by $12,600.
The culprit of the increase in premiums are from the Biggert-Waters Act of 2012 which was designed to make the National Flood Insurance Program (NFIP) more financially stable, and ensure that flood insurance rates more accurately reflect the real risk of flooding.
The Act was passed to stabilize the cash-strapped NFIP by phasing out subsidized flood insurance and allowing them to increase by 20 percent to 25 percent per year until they reflect the actual cost of flood risk.
To fight the implementation of the law and seek a delay, the National Association of Realtors has issued a nationwide Call-for-Action urging Members of Congress in both houses to bring the Homeowner Flood Insurance Affordability Act (H.R. 3370 and S. 1610) to the floor for immediate consideration and a vote in each chamber. This legislation will aim to fix some of the unintended consequences from the implementation of the 2012 Biggert-Waters Flood Insurance Reform Act.
Realtors say the current legislation will decrease property values and stall the housing market recovery.
Brentwood realtor Cathy Daniel, Ridgewater Real Estate Services. supports the Call-To-Action calling it timely.
“This will affect the whole market and is a serious problem that needs to be addressed,” says Daniel. “People need to understand how serious this is. I am happy the National Association of Realtors is taking action in looking out for everyone’s welfare, not just realtors in this case.”
Aaron Meadows, A. Meadows Property Management, also supports the Call-To-Action
I support it. Something needs to happen,” says Meadows. “Homeowners need to be protected from significant increases.”
He encourages his follow REATLORS, homeowners, and prospective buyers to contact legislators to express their concerns with the current legislation and work on a fix.
According to local insurance agents Tim Biglow and Dirk Zeigler, homeowners in East Contra Costa County on average could see as much as a 10% increase on their flood insurance premiums according to figures they have seen on policy’s that are set to renew in January.
Below is a link to the website encouraging a fix to the Biggert-Waters Act of 2012
C.A.R. and NAR Support “Homeowner Flood Insurance Affordability Act.”
The NATIONAL ASSOCIATION OF REALTORS® has issued a nationwide Call-for-Action, urging members to contact their Members of Congress in both houses and bring the Homeowner Flood Insurance Affordability Act (H.R. 3370 and S. 1610) to the floor for immediate consideration and a vote in each chamber. This legislation will aim to fix some of the unintended consequences from the implementation of the 2012 Biggert-Waters Flood Insurance Reform Act.
REALTORS® and homeowners across the country were already reporting significant increases in annual premium rates before National Flood Insurance Program rate changes took effect on October 1; this is raising concerns among consumers and REALTORS® about decreased property values and a stalled housing market recovery. This drastic increase in flood insurance premiums for coverage under the NFIP is negatively impacting transactions and the nation’s real estate recovery.
The CALIFORNIA ASSOCIATION OF REALTORS® needs your help to ensure that this is a priority for Congress and is brought up for vote immediately. Tell Congress we support the “Homeowner Flood Insurance Affordability Act.”
Please respond to this very important Call-for-Action today by clicking here.
We are asking Congress for a four- year time-out to fully correct some of the implementation problems that will threaten real estate transactions where flood insurance is required to obtain a mortgage. The REALTOR® Party and CALIFORNIA ASSOCIATION OF REALTORS® need you to tell Congress to delay changes to the NFIP and we support the “Homeowners Flood Insurance Affordability Act”.
