9/11/2013 Realtor Report
I wanted to talk to you today Realtor to Realtor about the Biggert-Waters Flood Insurance Reform Act of 2012. It was just added in a Realtor perspective, but was made retroactive from July 2012. There are a lot of rumors about this act, but nobody really knows how the dust is going to settle. For Congress to be able to renew the national flood insurance policy, they needed to find a way to make it fiscally sound. For a long time it has run as a deficit, but now they're setting it up for it to run on it's own overtime. This affects everyone around the country, but Florida residents are affected most because of the fact that we live on the peninsula. With a peninsula our shoreline is exposed on three sides of the state. This essentially effects people who live on or near the coastline the hardest. Premiums are expected to rise anywhere between 20 and 500%. In one extreme example, a property's premiums went up 1200%. The primary affected people are people who live in zones: A, AE, V- primary flood zones. C zones will also be affected, but not as much. Nobody has any idea how this is going to resolve itself, but the National Association of Realtors has put together some verbage for disclosures for your brokerage. Through the wisdom of Congress, they retroactively activated this beginning in July 2012, So the best thing to do from this point on is to find a plan to protect you and your brokerage best from here on out.
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