From the Washington Post: The country’s flood insurance program is sinking. Rescuing it won’t be easy. Some excerpts:
The extreme cases are only a fraction of the NFIP’s 5 million active policies, but they historically have accounted for about 30 percent of its claims. And while they’re a financial albatross for taxpayers, the claims are hardly the program’s only challenge.
The NFIP, which must be reauthorized by the end of September, is nearly $25 billion in the red — a debt that administrator Roy Wright says he sees no way to pay back.
“Only Congress can deal with that past loss,” Wright said last week . “What we’re focused on today is ensuring that going forward, we’re putting ourselves on a sound financial footing.”
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Update: Another big problem for the NFIP is the Deluge of Repeat Claims. See this article on 7/25