MBA advocated for action in three key areas: the reauthorization of the NFIP, assured access to property insurance, and reforms to the FHA-Insured multifamily program.
Reauthorization of the NFIP
As new NFIP policies cannot be issued during a lapse in authorization, MBA stressed the necessity of a longer-term authorization to provide stability and certainty for homeowners, businesses, and real estate markets.
“Beyond this imminent threat, especially during hurricane season, a longer-term authorization is vital to provide needed certainty to homeowners and small businesses that depend on the program for flood damage protection, to protect our residential and commercial real estate markets, and to provide stability for the companies and agents that sell and administer the NFIP policies to millions of consumers across the country,” MBA stated. “A long-term authorization would also allow more adequate time to consider NFIP reforms that better address commercial and multifamily lending concerns – along with appropriate climate change risks.”
Access to property insurance
MBA members have also expressed deep concerns about the private property insurance market, particularly in states like California, Florida, Texas, and Louisiana. The increasing severity of weather events due to climate change has led many insurers and re-insurers to withdraw from these states, resulting in limited or unaffordable coverage. Wildfires in the Western United States and catastrophic events like Hurricane Ian have exacerbated the problem.
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Source: mpamag.com