What does it take to get Congressional action? Apparently not even a Cat 5 hurricane will do it! See this article from Bloomberg News: Hurricanes Have Failed to Spur Flood Insurance Reform Bill. two key points:
- Taxpayers remain on the hook as Hurricane Florence bears down
- Reforms stall on program that’s more than $20 billion in debt
Sure wish we had a Congress with a sense of responsibility and a long-term outlook!!!!
A serious lapse in the National Flood Insurance Program is about to happen. From the Scientific American, see: As Hurricane Season Ramps Up, Flood Insurance Program Set to Expire. Efforts in Congress to reform the program have stalled, leaving property owners vulnerable
From the Union of concerned Scientists: New FEMA Study Wisely Details Ways to Make Flood Insurance Affordable. Here is the direct link to the 111-page report titled An Affordability Framework for the NFIP.
The Federal Emergency Management Agency (FEMA) released a report today detailing how Congress can modify the National Flood Insurance Program (NFIP) making insurance more affordable for low-income households and limiting their future risk. Some of the possible policy options include: sharing premium costs with FEMA, assisting those already spending significantly on other housing expenses, and providing grants or loans for mitigation actions that reduce flood risk.
From the NYTimes: A Broke, and Broken, Flood Insurance Program. Now, an unusual coalition of insurers, environmentalists and fiscal conservatives is seeking major changes in the federal plan as a deadline approaches.
How Washington lobbyists fought flood insurance reform. They have already maneuvered to slow lawmakers’ efforts to overhaul the National Flood Insurance Program and protect their industries’ profits.
Article today in Bloomberg News: Trump FEMA Chief Supports Cutting Coverage for Flood-Prone Homes
It sounds like the new FEMA chief is picking up on an old Heritage Foundation recommendation.
From the NRDC, this new report on the National Flood Insurance Program: Troubled Flood Insurance Program Traps Homeowners in Floodprone Areas .
The U.S. flood insurance program has repeatedly rebuilt some of the most flood-prone properties in the country, unintentionally setting a trap for owners of modest homes who would prefer to move out of harm’s way, according to a new national report from the Natural Resources Defense Council (NRDC). For every $100 the nation spends to rebuild homes with national flood insurance funds, FEMA spends just $1.72 to better protect people by moving them to safer, less flood-prone land.
NRDC’s Seeking Higher Ground, calls on Congress to adopt a series of climate smart reforms, including changing the mindset of “flood, rebuild, repeat,” to buying out homeowners who no longer want to rebuild on a vulnerable property.
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.”
Be sure to read the comments on this posting.
Update: Another big problem for the NFIP is the Deluge of Repeat Claims. See this article on 7/25