House Approves Disaster Insurance Legislation

House Approves Disaster Insurance Legislation

The House of Representatives on Thursday approved a bill that would help protect insurance markets in disaster-prone states from suffering devastating losses in the event of a catastrophic natural disaster.

“H.R. 3355 is an important first step toward ensuring the availability and affordability of property insurance for home owners and commercial property owners in disaster-prone states,” says NAR President Pat V. Combs.

The bill would require the federal government to lend billions of dollars to states to help pay for damage to homes and businesses from such things as forest fires and hurricanes. The legislation now moves to the Senate, where it has backing from Hillary Rodham Clinton (D-N.Y.) and Bill Nelson (D-Fla.).

Combs says the availability of insurance is vital to real estate transactions, since having insurance is usually a prerequisite to obtaining a mortgage. “The inability to obtain affordable insurance would be a serious threat to the real estate market,” she says, adding that a strong real estate market is central to a healthy economy.”

Source: NAR; The New York Times, Joseph B. Treaster

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