FL Realtors President Stresses Importance of Property Insurance Affordability

The president of the Florida Association of Realtors said the availability and affordability of property insurance has an impact on the real estate market and the importance of it, not only for homeowners, potential homeowners and the owners and potential owners of commercial properties "cannot be overstated." Cynthia Shelton testified at a West Palm Beach, Fla. hearing of the U.S. House Financial Services Committee's Oversight and Investigations Subcommittee held on July 2. "Homeowners' insurance is a necessary component in securing a mortgage and buying and selling a home. If a potential homebuyer is unable to obtain or afford the required insurance, the sale will not be completed. As a result, potential homebuyers are excluded from the market," she said. Ms. Shelton also claimed that home values are directly tied to the cost of property insurance. Because homeowners are required by lenders to have property insurance, policies that are expensive or unavailable devalue real estate. She also spoke in support of a bill proposed by Rep. Ron Klein, D.-Fla., called The Homeowners' Defense Act of 2009. "The lack of a national natural disaster policy has had a measurable direct impact on the availability and affordability of property casualty insurance in many parts of the country. The inability to obtain affordable homeowners' insurance is a serious threat to the residential real estate market - and thus, our entire economy," Ms. Shelton said.