CONWAY, SC (WBTW)- Lawmakers on Capitol Hill are working to reverse a federal law that keeps potential home buyers from finding out if a home routinely floods.
A homeowner is only required to disclose two things; a general knowledge of flood history in the area and if there’s any existing flood damage That makes it difficult for home buyers to know exactly what they’re getting into.
Mortgage companies require flood insurance for at risk areas. Flood plains make up 70 percent of the low country, but knowing exactly how many times a home has filed a flood insurance claim is something a potential home buyer can’t find out.
“The Riverwalk here in Conway, and it’s a repetitive claims history every single year,” said Chloe Andrews, an insurance broker for Drew Insurance and Financial Solutions.
Because of the privacy act of 1978, buyers can’t find out how many times a home has filed a flood insurance claim. That could mean financial turmoil if the new homeowners have to file a claim.
“When we rate the policy we’re not rating it with claims history considered. They’re waiting until the new homeowner is filing a claim and re-rating it again on renewal with higher premiums,” said Andrews.
Congress is trying to change that with the 21st Century Flood Reform Act.
Seventh District Congressman Tom Rice gave us this statement saying in part:
“I helped pass the 21st Century Flood Reform Act in the House, which includes critical reforms to protect property owners, shift liability away from taxpayers and ensure the sustainability of the NFIP.”
In 2015-2016, nearly 6,000 South Carolinians filed a claim with the national flood insurance program.
Congress reauthorized that program until the end of the current hurricane season, but when we reach Novemeber 30th, they have to make another decision.
“They have until 11:59 pm to make the necessary changes or there’s going to be approximately 40,000 home closings in the area that wont take place,” said Andrews.
The 21st Century Flood Reform Act still sits in the Senate. Congressman Rice said he hopes his colleagues in the Senate will pass this as soon as possible.