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Florida Association of Realtors News

Florida Association of Realtors President Urges Congress to Develop a Comprehensive National Disaster Policy

PALM BEACH, Fla., Feb. 11 PRNewswire — Florida Association of Realtors'(R)(FAR) 2008 President Chuck Bonfiglio is speaking to members of the U.S. House of Representatives Financial Services Subcommittee on Oversight and Investigations today at a special field hearing at the Palm Beach County Commission chambers.

Testifying on behalf of FAR's more than 150,000 Florida Realtor members, its 17,000 member firms, as well as the state's residents and visitors, Bonfiglio is discussing the impact of Florida's property insurance crisis on communities, homeowners, business owners and the economy. Florida Insurance Commissioner Kevin McCarty is also testifying at the hearing, which begins at 1 p.m.

Bonfiglio, the broker-owner of Century 21 AAA Realty in Cooper City, says that the availability and affordability of property insurance is a consumer issue that affects everyone.

"The Florida Association of Realtors strongly encourages Congress to enact a comprehensive natural disaster policy to help property owners prepare for and protect against losses from future catastrophic events," he says. "Such a policy would recognize the respective responsibilities of property owners, private insurance markets and all levels of government in preparing for - and recovering from - such devastating events."

Bonfiglio is planning to offer the subcommittee suggestions for what Realtors believe must be included in a comprehensive approach to addressing future catastrophic natural disasters.

Catastrophic natural disasters are a national issue, says Bonfiglio. Federal catastrophic insurance coverage would permit insurance companies to better manage risk and widen insurance availability at reasonable costs. Just as with federal terrorism insurance, coverage on unknowable events allows the private insurance market to continue its presence. Bonfiglio points out that the ongoing recovery from the devastating 2004-2005 hurricane seasons "shows that all taxpayers in the country have a stake in federal natural disaster policy because their tax dollars are funding recovery efforts."

Florida Realtors know that safeguarding the vitality of residential and commercial real estate is key to maintaining a strong economy. The limited availability and high cost of insurance not only threatens the ability of current property owners to hold onto their properties, but also threatens to slow the rate of housing and commercial investment in many communities, says Bonfiglio.

FAR supports the creation of a comprehensive federal natural disaster policy that:

— Protects property owners by ensuring that transparent and comprehensive insurance coverage is available and affordable, with premiums reflective of the risk involved; — Acknowledges the importance of personal responsibility of those living in high-risk areas to undertake mitigation measures and purchase adequate insurance; — Provides property owners adequate incentives to undertake appropriate mitigation measures; — Acknowledges the importance of building codes and smart land-use decisions, while also recognizing that proper enforcement of both is best left in the hands of state and local governments; — Recognizes the role of the states as the appropriate regulators of property insurance markets while identifying the proper role of federal government intervention in cases of mega-catastrophes; and — Reinforces the proper role of all levels of government for investing in and maintaining critical infrastructure including levees, dams and bridges.

Bonfiglio says, "FAR believes that it is in the best interests of all Americans to have a comprehensive federal natural disaster policy that includes aggressive mitigation and an appropriate assumption of risk so that affordable insurance for homeowners and commercial properties is available. Creating a comprehensive natural disaster policy is essential in the coming years, and passage of a comprehensive national disaster policy is a top legislative priority for Realtors in Florida and across the nation."

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 150,000 members in 68 boards/associations.

SOURCE Florida Association of Realtors