This fall, the Biggert-Waters Act began the process of removing federal subsidies for flood insurance on more than one million homes nationwide. This action has caused flood insurance premiums to skyrocket. In turn, the real estate markets in these areas are growing cold.
Recently, SLAR President Donna Zerega wrote to St. Louis area congressmen and senators to emphasize the great difficulty these actions will cause. President Zerega explained, “In some instances, homeowners that have never flooded and built to code are facing 2,000-3,000% increases in annual premiums. This drastic increase in premiums will cause property values and assessments to drop, bank mortgages to go into default, local tax bases to erode, and economies to be eviscerated.”
REALTORS® will continue to work with federal legislators to revise the act and relieve the heavy burden that has been suddenly placed on homeowners.