How Flood Insurance is Impacting Transactions
LOUISIANA REALTORS • December 27, 2018
Updated on 12/28/2018…
In a critical win for home sales,FEMA reverses a controversial ruling released earlier this week. The agency will resume issuing and renewing flood insurance policies without interruption to the transaction.
"FEMA and the Administration deserve credit for hearing our concerns and acting swiftly
to address them," says National Association of REALTORS®' President John Smaby. "This new decision means thousands of home sale transactions in communities across the country can go forward without interruption, as Congress intended when it renewed the flood insurance program earlier this week."
"This would not have been possible without the constant communication with Louisiana's congressional delegation and the hard work of NAR regulatory and lobbying staff," said Louisiana REALTORS® CEO Norman Morris.
NAR, along with other organizations, including the Property Casualty Insurers Association of America and the Independent Insurance Agents & Brokers of America, urged policy makers to reevaluate the decision. Congress also expressed their concern as well.
"We thank our REALTOR® members who got engaged and responded with stories about their clients. This week's activities demonstrated how the REALTOR® Party protects your real estate business, mobilizes its efforts, and its effectiveness in protecting homeownership!." said Morris.
Original Post…
CONTACT US
WHAT IS GOING ON WITH FLOOD INSURANCE?
On December 26, 2018, the Federal Emergency Management Agency (FEMA) issued new guidance instructing insurers not to sell or renew flood insurance policies during the partial government shutdown.
<<Read the information from NAR>>
HOW DOES THIS AFFECT THE REAL ESTATE BUSINESS AND MY CLIENTS?
Transactions involving a buyer who has not
obtained required flood insurance will not be able to close until FEMA allows insurers to sell flood insurance policies.
Those who obtained flood insurance on or after 12:00 a.m., December 22, 2018, may also not be able to proceed with their closings pending a determination by FEMA.
IF THE NFIP WAS EXTENDED THROUGH MAY 2019, WHAT GIVES FEMA THE ABILITY TO DO THIS ?
FEMA’s decision was made under the Antideficiency Act, which generally prohibits federal expenditures/obligations in excess or advance of appropriations, except in cases of “emergencies involving … protection of property.”
WHAT IS THE NATIONAL ASSOCIATION OF REALTORS®’ POSITION ON THIS?
NAR believes FEMA’S action is contrary to the Congressional reauthorization and intent.
NFIP is funded by premiums paid by policyholders, not appropriations so the Antideficiency Act should not apply. NAR has provided FEMA with research that shows 40,000 home sales per month are at stake, which NAR believes would qualify for an exception under the Antideficiency Act and allowing NFIP to resume the sale of flood insurance policies.
WHAT CAN I DO TO HELP CONVINCE FEMA TO RESUME THE SALE OF FLOOD INSURANCE POLICIES?
NAR is looking for directly affected home buyers
who can tell a compelling story of how FEMA’s decision is harming real, ordinary people and families
who most Americans can relate to on this issue.
NAR may share these stories with FEMA or Congress
to demonstrate the disruptive affect this decision has on the real estate market and ordinary citizens. NAR may also ask the buyer to be a media spokesperson for the issue if their story is what NAR is seeking to convey about the disruption FEMA’s decision is causing.
Louisiana REALTORS® is seeking your help to identify any of your clients who may have a compelling story that they are willing to share about the harmful impact of FEMA’s decision to stop selling flood insurance policies.
Please respond to info@larealtors.org
with your name, your client's name, phone number, and brief description of their situation. We will call you first and then contact them to see if your client's situation fits within the parameters NAR is seeking. If so, with their permission we will share their story and contact information with NAR.
2025 Extraordinary Legislative Session Wrap-up
Discover how real estate professionals can use technology to enhance client relationships, streamline transactions, and stand out in a digital market.
Louisiana REALTORS® wraps up 2025 and looks forward to 2026! Louisiana REALTORS® gathered in Baton Rouge from October 7–8 for the 2025 Fall Governance Meetings, a dynamic two-day event filled with professional development, strategic planning and member engagement. The day before the conference offered the conclusion to the 2025 LR Leadership Program with participants graduated from the yearlong program after a half-day session. The 2025 graduates include: Torri Byrd, Shawn Carter, Bradley Cook, Stefany Deroche, Mignon Richard Díaz, Alfra Dixon, Thaddeus Dixon, Glen Elliott, Yvonne Graham, Charlotte Johnson, Michelle LaBanca, Slagle McGuffee, Ellen Monroe, Matt Noel, Ros Pack, Tiffany Pellerin, Latonia Riggs, Shannon Rodi Nash, Trish Skellham, Rebecca Slone and Charlotte St. Romain. Additionally, a sold-out, full-day AI-Powered Real Estate Professional Certification course led by industry expert Matthew Rathbun blew away attendees and had them leaving the session with such invigoration. The first official day of the conference held focus on professional development and networking. Tuesday opened with an informative session entitled Professional Liability 101 from Rice Insurance Services Center, offering critical insights into E&O and risk management. RPR's session brought a wealth information to attendees and offered a hands-on learning experience for the tools offered online. Targeted sessions like the Local AE Meeting and the YPN Advisory Council Open Meeting provided space for peer exchange and innovation. The day concluded with a festive Opening Reception sponsored by Louisiana YPN, bringing members together to celebrate and connect. The next day offered collaboration and celebration with Closing the Affordability Gap, presented by the Louisiana Housing Corporation, equipping REALTORS® with tools to better serve clients in today’s market. Regional caucuses followed, allowing members from across Louisiana to discuss local issues and share best practices. The Board of Directors Meeting brought the governance portion of the event to a close with strategic decisions for the year ahead. At the Board Meeting, Chris Brock, Northeast REALTORS® of Louisiana; Trish Leleux, Greater Central LA REALTORS® Association; Synde Devillier, Bayou Board of REALTORS®; Scott McCubbin, Bayou Board of REALTORS®; Amber Morrow, Greater Fort Polk Area REALTORS®; and David Moses, Greater Central LA REALTORS® Association; were elected as 2026 At-Large Directors. The grand finale? A spirited LSU Pregame Fan Experience and the highly anticipated Installation Ceremony, where new leadership was formally welcomed in a celebration of community and commitment. Louisiana REALTORS® looks forward to hosting REALTORS® from around the state at the Winter Leadership Conference, March 3-4, 2026, at the Live! Casino & Hotel in Bossier City. We would like to thank our sponsors Greater Baton Rouge Association of REALTORS® (GBRAR) , Zillow , Dax Roy Appraisals, Supra, American Home Shield, Guard Home Warranty fo r their generous support in helping make this conference happen!
