As the recent flood events in Texas and Florida clearly show, having a viable and functioning flood insurance product is critical to property owners and the economy. Unfortunately, the scope of the crisis is going to challenge the Congressional flood insurance discussion currently underway. To that end, Congress has acted to reauthorize the program for 90 days—through December 8.
Since Congress returned to DC after their August recess, flood insurance reauthorization was among the top items up for discussion—as it was set to expire at the end of September. The ideal scenario would be a five year reauthorization, but that outcome may be difficult for a variety of reasons. In August, the National Association of REALTORS® sent out a nationwide Call for Action to encourage members to contact their representatives. Fortunately for you, Congressman Walter B. Jones and Congressman David Rouzer are at the forefront of this discussion and are leading some of the reforms. They both fully understand the critical importance of a viable flood insurance product–and the impact on southeastern North Carolina if the program expires.
The real issue is the two sides of this discussion. On one hand you have a need for a viable, flood product that recognizes grandfathered properties, spreads risk equitably and allows the real estate market to continue to function. At the same time, you have a program which is saddled by billions of dollars of debt from prior storms like Sandy and Katrina (and now Harvey and Irma). It is a challenging discussion. We look forward to continuing to work with our federal partners and Congressional leaders in the coming weeks.