Copyright: Gem Photo
NMHC/NAA joined fourteen other real estate trade groups in sending a letter to members of the House & Senate calling for the reauthorization of the National Flood Insurance Program (NFIP) and for reforms that would help the program better address the needs of the multifamily and commercial sectors. In the letter, the groups advocate for the adoption of many of NMHC/NAA’s priorities in the NFIP reauthorization, including:
- Expanding the private flood insurance market;
- Improving coverage options for multifamily and commercial property owners through the creation of Business Interruption coverage through the NFIP;
- Moving commercial and multifamily claims to Replacement Cost Value (RCV) as opposed to Actual Cost Value (ACV);
- Allowing for multiple buildings to be covered by one NFIP policy;
- Removing the federal mandatory purchase requirement for high-value properties;
- Increasing the accuracy of the FEMA flood mapping process and overhauling the map appeals process to make it far less costly to individual owners; and,
- Prioritizing more effective pre-flood mitigation and employ resources to help commercial and multifamily owners benefit from existing mitigation programs.
The letter was sent in advance of the House Financial Services Committee releasing its draft proposal for reauthorization, which is expected shortly. The NFIP expires on September 30, 2017, with leaders of both the House & Senate committed to avoiding so as to prevent real estate market disruptions.
More information on NFIP and NMHC/NAA’s reform goals can be found here.
Staff Resource
Related Articles
- Real Estate Industry Coalition Letter to HUD on Federal Flood Risk Management Standard Implementation
- Housing Affordability Coalition Letter on Rising Insurance Costs
- FEMA: National Flood Insurance Program Flood Mitigation Measures for Multi-Family Buildings
- Housing Industry Letter to Congress: Government Shutdown
- NMHC-NAA Statement for House Financial Services Subcommittee Hearing on the High Cost of Insurance for Consumers