Real Estate Industry Weighs in on Flood Insurance

NAIOP and a coalition of other commercial real estate organizations are urging Congress to reauthorize and reform the National Flood Insurance Program (NFIP). While many think of the flood insurance programs as primarily benefitting homeowners, the program also helps protect commercial business owners and their properties, and is essential where there is a limited private market for insurance. The NFIP was last reauthorized in 2012, and expires on September 30 unless Congress takes action.

In identical letters sent to authorizing committees in the House and Senate, the coalition members recommended “that Congress reauthorize and reform the NFIP so it can continue to help the nation’s commercial and multifamily business owners protect their properties, residents, and the jobs they create from the financial perils of flooding.” In addition to enacting a long-term reauthorization of the program, the coalition recommended reforms and improvements to the program, including:

  • Expanding private flood insurance markets by passing legislation that would enable consumers to move to the private market, while allowing for their return to the NFIP program;
  • Updating and improving coverage options, including allowing participants to pay increased amounts to obtain additional coverage for business interruption, coverage of multiple buildings, and other options;
  • Helping the Federal Emergency Management Agency develop more accurate flood mapping.

NAIOP will continue to work with others in the real estate industry to educate Congress on the continued importance of NFIP, and to advocate for its reauthorization.

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