Congress Extends NFIP through November 30
LOUISIANA REALTORS • August 6, 2018
Last week, the U.S. Senate passed legislation to extend flood insurance funding. The bill cleared the House previously and is expected to be signed into law by the President. More than 129,000 REALTORS® representing about 15% of NAR members sent letters to their members of Congress in support of the extension. REALTORS® in Louisiana posted a 34% response rate to the Call for Actions leading the country in overall responses. The responses are important to being sure that homeowners have a voice when it comes to policies that impact homeownership.
The National Flood Insurance Program (NFIP) will remain in operation through November 30 though several issues remain to be addressed. More information will be made available as NAR continues its efforts for long-term authorization.
“We applaud lawmakers for taking this needed action to prevent disruptions to closings in thousands of communities across the country. Although the National Flood Insurance Program will be extended through November 30 when signed into law, the NFIP is in desperate need of reforms that will make it solvent and sustainable in the long term. The National Association of Realtors will continue fighting for these reforms as the next NFIP reauthorization discussions loom later this year,” said Elizabeth Mendenhall, NAR President.
In Louisiana, NFIP is the primary source of flood insurance with 500,000 policies. Real estate transactions would have been impacted had the extension not passed. "Over half a million people in Louisiana rely on this program, and I did everything in my power to keep it alive at least to get us through hurricane season," said U.S. Senator John Kennedy. "Going forward, I will continue to fight like hell to make sure that Louisianans and other NFIP users won’t have their insurance lapse due to absurd and unnecessary politics. Now that we have a little peace of mind and a short-term fix in place, we can turn our focus to working on long-term sustainable reforms to this program."
"If the program is not fundamentally reformed, it will continue to accumulate debt at an unsustainable rate," warns David Maurstad director of NFIP. “There isn’t any operation that can support a debt program that exceeds its ability to economically, efficiently and effectively use the funds that have to go towards interest payments," the NFIP's director said on a call discussing the scheme's 50th anniversary.
Louisiana REALTORS® will continue to update members as this issue moves forward.
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From the Louisiana Department of Insurance: During a press conference today with Governor Jeff Landry, Insurance Commissioner Tim Temple announced that registration for the next round of the Louisiana Fortify Homes Program (LFHP) will open at 8 a.m. on Monday, June 1, and will include 3,000 grants. The registration period for this lottery will be open for three weeks, closing at 5 p.m. on Friday, June 19. During the press conference, Gov. Landry signed HB 1187 by Rep. Paul Sawyer, which will allow Louisiana Citizens Property Insurance Corporation to transfer $50 million in additional Katrina bond assessment funds to the LFHP. Combined with the $30 million in funding the program will receive through taxes and fees on insurance entities, the LFHP will receive a total of $80 million this year. “By lowering overall losses, we can reduce insurance and reinsurance costs, draw more insurers into the market, motivate existing companies to write additional policies and lower insurance premiums,” said Commissioner Temple. “That is exactly what the Louisiana Fortify Homes Program is designed to do.” The list of coastal parishes that are eligible to participate is expanding to include Acadia, Jefferson Davis and Lafayette parishes. Additionally, homeowners who live in the portions of Ascension, Calcasieu, Iberia, Livingston, St. Martin, St. Tammany, Tangipahoa and Vermilion parishes that were previously not included in the program will now be eligible to participate. A map showing the full list of eligible parishes is available on FortifyHomes.La.Gov . “Louisiana is the fastest growing state in the country for Fortified roofs, and that growth is not by accident—it is the result of strong support from Governor Landry and legislators like Chairman Talbot, Chairman Firment and Representative Sawyer, targeted program design, and a clear recognition that strengthening homes is one of the most effective ways to reduce insurance losses,” said Commissioner Temple. “At the end of the day, this program is about more than just roofs. It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.” To participate in the lottery, homeowners must register during the June registration period. Homeowners who registered for a previous round but were not selected must register again to participate. People who register on the last day of the registration period have the same chance of being selected as those who register on the first day, so there is no need to rush to register as soon as the period opens. When registering, homeowners will need to upload their homestead exemption, insurance policy declarations page that includes wind coverage, and flood insurance declarations page if the residence is in a flood zone. Homeowners who need assistance obtaining a copy of their homestead exemption should contact their parish tax assessor. Homeowners can contact their homeowners and flood insurance companies or agents for a copy of their policy declarations page. Homeowners are required to create a profile in the LFHP system before registering for the lottery and may do so by visiting the LFHP website and clicking the Login button. Homeowners who previously created a profile may use the same one for this and future rounds. Once the lottery registration period closes, the LFHP will randomly select 3,000 participants and send email notifications to registrants about whether they were selected to participate. These selection notices will be sent via email beginning on Monday, June 22. There are several program requirements that homeowners should be aware of before registering. Those interested in the program are encouraged to review eligibility information and frequently asked questions at FortifyHomes.La.Gov to determine whether their home meets the requirements for the program. If selected to participate in the grant program, homeowners will be financially responsible for having the home evaluated by a FORTIFIED-certified Evaluator as well as costs for the roof upgrade including permits, inspections and construction costs beyond the amount of the grant The LFHP provides grants of up to $10,000 for homeowners to upgrade their roofs to standards set by the Insurance Institute for Business & Home Safety. The program helps Louisiana homeowners strengthen their roofs to better withstand hurricane-force winds.
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