This year’s monsoon season has already brought tragedy to the state, with flash floods destroying popular hikes and swimming spots. Every year the heavy rains bring torrents of water that turn roads into rivers and great damage to homes and businesses.
Arizona experiences a great deal of flooding every year during monsoon season, and that’s why the National Flood Insurance Program (NFIP) is so critical for REALTORS® here.
Unfortunately, the NFIP is set to lapse unless Congress takes action on it before September 30, 2017. So, you owe it to yourself and your clients to support the next Call for Action to pass H.R. 2874: The 21st Century Flood Reform Act and amend S.1751 to include private market insurance.
Download the REALTOR® Action Center Mobile App to stay informed.
At this point, Congress seems more focused on tax reform than tackling practical issues like flood insurance, which could have major consequences for homeowners, REALTORS® and the economy as a whole, if it isn’t renewed.
The last time the NFIP expired, an average of 40,000 home sales per month across the country were stopped, creating negative effects throughout the industry and the rest of the economy.
Home sales throughout Arizona rely on the floodplain maps created by the Federal Emergency Management Agency (FEMA) along with the rates set by the NFIP. If that insurance expires, properties on the market in areas designated as floodplains will grind to a halt, derailing sales beyond the affected areas.
H.R. 2874 was designed to improve NFIP’s financial stability, enhance development of more accurate flood risk estimates, increase the role of private markets in managing flood insurance risks, and provide alternative methods to insure against flood peril.
Renewing the NFIP is a critical national issue and one of the major issues being worked on by your government affairs team at the National Association of REALTORS® (NAR). Without reauthorization, NFIP cannot issue or renew policies in 22,000 communities (many in Arizona) where flood insurance is required for a mortgage.
This is why a portion of investments in the REALTOR® Party of Arizona go to NAR, so they can effectively advocate for you and your clients at the national level.
It can be challenging to cut through the noise of Congress and high-visibility issues like health care and taxes, but unglamorous issues like flood insurance have a huge impact on families throughout the country.