Realtors have raised an alarm regarding flood insurance. Flood insurance is currently a major, yet little known issue in the U.S. Most homes do not have protection against flood damage and those homes that are required to have such protections as per their mortgage agreements obtain this coverage through the National Flood Insurance Program (NFIP). The federal program has been crippled by debt, however, making its future uncertain. If the program does fail, realtors from the National Association of Realtors fear that the still-fragile housing market may not survive the blow.
Without the program, most U.S. citizens would not have access to affordable flood insurance. Those living in flood prone areas would especially be impacted by the failing of the program as they would be required to obtain coverage they could not afford. Uninsured homes damaged by floods are often left abandoned as homeowners do not have the means to pay for repairs following a natural disaster.
NFIP currently has support from the government which has extended the life of the program for another five years. Troubled by massive debt, however, the program may not have enough money to last that long. Realty groups are now pressuring Congress to make reforms to the program for the sake of consumers. Without major changes, the program is likely to dissolve and leave it once protected open to risk they cannot manage on their own.