Laura Crowther, CEO of the Coastal Carolinas Association of Realtors, expects the U.S. Congress will act early next year to delay further implementation of the new flood insurance rates.
The new rates, which began to take effect this year, will eventually require that all homes in designated flood zones pay the full cost of insuring them. The federal government has subsidized flood insurance for decades, and the end of that program means insurance costs to homeowners will rise dramatically on some properties.
A bipartisan coalition in Congress is willing to delay the increases, as much as four years, while a study is done on the program.
About 50,000 properties along the Grand Strand could be impacted by the new rates. Nationwide, 1.1 million properties are in flood zones, and concern over the new deal has raised warning flags among some Realtors along the Gulf and Atlantic coasts that it could cause a slowdown in the market.
Crowther said it doesn’t appear that the rollout has affected area sales to a great extent, but she cautioned that the association is trying to get an exact count of sales that have been sabotaged so far by the higher rates.
She said she knows of about a dozen.
The association is looking for the study to provide the numbers to send Congress in case they are needed to push the legislation through both chambers.
Contact STEVE JONES at 444-1765.