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1,300 Sales a Day to Stall if Flood Insurance Stops

By Robert Freedman, senior editor, REALTOR® Magazine

Flood insurance is commonly thought of as a coastal issue but flood plains are located throughout the country and in fact, in some Midwestern states, almost 10 percent of homes are in flood plain zones.

For that reason, it’s not just a coastal issue if the National Flood Insurance Program expires at the end of September, which is when the federal fiscal year ends.

NAR has been talking with lawmakers and their staffs about renewing the program (there’s a bill that would renew it for five years and make NAR-supported reforms), because if the federal government stops issuing the insurance, purchases of homes in flood plains can’t close.

Whats the potential universe of impacted properties? NAR estimates the number at more than 1,300 a day.

Most of those are in the South, but almost half are in the other three regions: Midwest, Northeast, and West.

Selma Hepp of NAR Research talks about how she derived the number and how that 1,300-a-day figure breaks out regionally in the 3-minute video above.

Take action on flood insurance.

Background.

Robert Freedman

Robert Freedman is manager of multimedia communications for the NATIONAL ASSOCIATION OF REALTORS®. He can be reached at rfreedman@realtors.org.

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Comments
  1. kria

    Why are we building in there in the first place?

  2. Well I don’t think that will go over very well given that the housing industry is already in such a mess. Can they really stop issuing flood insurance?

  3. Doris Mabry

    My first thought was that houses shouldn’t be built in flood zones. And I don’t think any new houses should be. I also don’t think houses should be rebuilt in flood zones. If the house floods, then the owners should receive their insurance so they can rebuild elsewhere. Maybe then the wetlands will expand and we won’t have massive flooding along the Mississippi, etc., like we have now.

    However, the Feds (or whoever) revised the flood plan maps about 10 years ago. When they did that, I discovered that a house that I once owned had been put into a flood zone. It has never flooded and I don’t see how it ever would. But it’s there and the current owners had to buy flood insurance (and have protested to no avail). So, they wouldn’t be able to sell it if the next owners couldn’t get insurance. It’s a nice home in a great spot.

    Conclusion, there is a need for flood insurance, but the law probably needs to be qualified somewhat (to allow for logic).

  4. Rosaleen Reisert

    I have had to pay flood insurance since i bought my house in 1999 because the bank would not give me a mortgage if i didn’t. Last year it went up 3x what i was paying and i have never had a claim or a flood in all those years. I think it is bullshit. I’m just paying for all the homes that do get flooded.

  5. Government meddling caused the problems we have in the real estate industry today. It’s time to get government out of our lives except for the protection of our lives, liberty & private property rights. We should fight for private property rights: no property taxes, little if any eminent domain & little if any zoning. We should also give up the interest deduction and demand the FairTax.

  6. Flood zones here change periodically (as much as every 3 – 4 years) & lenders can require flood insurance. If the government doesn’t renew, then many purchases will be put on hold or won’t be able to purchase a new home.

    Our industry (like many) seems to be a “mess” because of government & lending control and regulations.

    Flood insurance is like all insurance, you hate to pay for it but glad you have it if you ever need it.

  7. Always be sure to check out the area surrounding your next potential home property buy. Even in the south or the southwest, there are flood zones, although a buyer may not be aware of this. Being cautious and purchasing flood insurance is the best choice.

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