Recently, the board of directors of the National Association of Realtors approved a five-point policy on homeownership insurance in response to the national crisis in premium costs and access to affordable insurance for consumers.

The association's new policy addresses assistance for state association legislative and regulatory insurance dealings; federal policy recommendations; alternative insurance product recommendations; education efforts; and recommendations for state association activity.

"Property and casualty insurance has become more difficult and expensive for residential as well as commercial properties in the past few years. Insurance is necessary to secure a mortgage, and lenders require ongoing coverage. But increases in insurance premiums are preventing some potential homebuyers from qualifying for a mortgage and buying a home. Current homeowners are also put in jeopardy by the increased costs of insurance," said Michael Schmelzer, a Realtor who chaired the National Association of Realtors Insurance Task Force.

According to Schmelzer, the association is taking a leadership role in finding solutions for the insurance crisis in the United States as an advocate for property owners' access to affordable insurance products. In adopting the new policy, the National Association of Realtors will create a program to support state associations so they can effectively address legislation or regulation dealing with insurance issues at the state level.

The association supports transparency and accuracy of insurance scores through disclosure of insurance scores to consumers. In addition, the association supports a shorter time frame for consumer reporting agencies to investigate and correct consumer reports; increased penalties for repeated reports containing inaccurate information to consumer reporting agencies; and regulations for multiple inquiries generated when consumers shop for mortgages or insurance over an extended time period.

In the commercial property sector, the association will support amendments to the federal Risk Retention Act to make it possible for small- and mid-sized property owners to pool their risks and self-insure, as the largest owners do now. The association will also seek creation of a federal natural disaster insurance program supporting further tort reform.

Educating Realtors about the insurance market will become a key focus. The association is currently developing a set of best practices to guide Realtors on how to advise buyers and sellers on insurance issues.

Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors at www.silvar.org. Send questions on any topic to jnewton@jnpr.com.