Realtors watch Congress for a bill to delay increases in flood insurance rates
If a recent U.S. Senate bill passes the U.S. House of Representatives, premium increases for flood insurance policies could be delayed for up to four years, and with residences in the Crabtree Creek floodplain, the Raleigh Regional Association of Realtors is paying close attention.
Last week, Senators voted 67 to 32 to delay for up to four years large premium increases that are set to take effect next year as part of updated government flood maps, according to the Washington Post.
“Now that the bill has passed the Senate, we hope that the House will either take up the Senate bill or work on a similar bill to institute a four-year moratorium on rate increases for the buyers and owners of previously grandfathered properties,” says Tessa Hultz, CEO of the Raleigh Regional Association of Realtors.
If more properties are included in the next version of preliminary flood maps expected for Wake County in March or April, passage of the bill could have significant impact, according to Hultz, but more on homeowners than on commercial properties like Crabtree Valley Mall.
“Additionally, the moratorium on rate increases is important while issues of rate quote miscalculations and discrepancies are investigated,” says Hultz. “When the National Association of Realtors provided testimony to Congress recently, they were able to provide examples of quotes of rates exceeding the true risk rate by thousands of dollars.”