NAR Principles for Flood Insurance Reform

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The National Flood Insurance Program (NFIP) is essential to completing half-a-million property sales each year according to NAR research. However, the NFIP as currently structured is unsustainable for policyholders and taxpayers alike. For these reasons, NAR supports a strengthened NFIP coupled with a robust private market to offer consumer choices and maintain access to flood insurance. NAR believes that:

• NFIP reauthorization should be long term.
• To keep rates affordable, the federal government should offer pre-disaster risk mitigation options – including guaranteed loans, grants and buyouts for property owners to build stronger or relocate to higher ground.
• Private flood insurance barriers should be removed so consumers can choose lower cost options that meet federal coverage requirements.
• Premiums should continue to align with the specific flood risk of each building while gradually phasing in full-risk rates for older properties.
• Flood mapping should be modernized and completed throughout the nation.
• Real estate disclosures should be improved at the state level but buyers and renters should have direct access to NFIP claims and disaster aid data.
• The Office of the Flood Insurance Advocate should be fully supported in order to directly assist policyholders with flood insurance-related disputes.