Commercial NFIP Priorities Sent to Senate
On July 14, NAR, in coalition with other commercial real estate trade groups, sent a letter to the Senate Committee on Banking, Housing, & Urban Affairs, providing them with a list of ways the National Flood Insurance Program (NFIP) can be improved to be more responsive and effective for commercial real estate. The Senate Banking Committee is currently working on drafting reauthorizing legislation for the NFIP, which is set to expire on September 30.
The letter asks for six things:
- Maintain the commercial "opt-out" provision, as passed by the House Financial services Committee, in Senate legislation;
- Include optional business interruption coverage;
- Allow for multiple structures to be covered under a single policy;
- Help FEMA develop more accurate mapping;
- Develop more effective pre-flood mitigation options for commercial real estate; and
- Allow for replacement cost value, instead of actual cash value, for commercial and multifamily structures.
NAR has been actively working with both the House and Senate as they work to draft legislation reauthorizing this important program before it expires, and will continue to communicate to them our priorities as the process moves forward.