Follow @FloodPanel

Flood Barrier USA

Flood Protection for Commercial Property

  • Home
  • About Flood Barrier USA
  • Flooding News
  • Contact Us

Will Congressional Gridlock Endanger Flood Insurance?

Author: Donna Conneely

The National Flood Insurance Program insures more than 5.5 million residences in flood-prone areas, the majority of which are located in the states of Florida and Texas. The program is based on a contract between the federal government and the flood-prone communities, in which the community agrees to put into place flood management and flood protection measures in order to minimize future flood risks. In return, the federal government provides flood insurance in high-risk areas where no other insurance is available. The idea is that the community will beef up its flood protection management to such an extent that future damages will eventually be greatly lessened in severity, saving money in the long run.

Get Adobe Flash player

However, in recent years the program has run into major financial difficulties. During the aftermath of Hurricane Katrina, which occurred in 2005, the National Flood Insurance Program was inundated by claims. These claims were so overwhelming that a huge debt was created; a debt that is continuing to drag down the entire program. The debt currently surpasses $18 billion. No one denies that this crushing debt must be dealt with, but there is almost no agreement on just how it should be addressed.

The National Flood Insurance Program, which is overseen by FEMA, receives its funding from Congress. It is literally the only flood insurance option for residences in the US. Without this program, homeowners would not be able to get flood insurance in flood-prone areas, and therefore would not be able procure a mortgage. This would produce far-reaching consequences across the real estate, construction, and property development financial sectors.

Nevertheless, this vital program dangles in a funding limbo year after year, because of the huge, unsustainable debt from 2005. Each year the NFIP must wait for a crucial extension from Congress that will keep the program funded for a little while longer. Without this extension, no new policies may be written, which plays havoc with the housing market due to the uncertainty of the availability of the insurance. This year the NFIP funding was due to expire on December 16, 2011. However, in the nick of time Sen. David Vitter (R-LA) introduced a bill to extend the program through May 31, and this bill was passed.

A six-month extension is certainly better than no extension, but many voices are calling for an end to the uncertainty. In 2010, the authorization for the NFIP was allowed to expire four times for a total of 53 days without the program in place. Naturally, the ripple effect of these lapses did nothing to help the already struggling economies in areas that were still recovering from flood disasters. During the lapses, current policies remain in effect, but new ones may not be written.

Senator Vitter, representing the flood-prone state of Louisiana, has introduced new legislation that would support the NFIP for a period of five years, bringing more certainty and stabilization to the program. Another idea is to uncap the premium raise limit, which is currently capped at 10% per year. Of course, this would make flood insurance more expensive for consumers, but at least they would be able to get it. Both of these ideas would require bi-partisan support to be implemented. As the recent debt ceiling battle clearly demonstrated, the current Congress shows little inclination to work together, leaving the future of the National Flood Insurance Program in a state of continuing uncertainty.

This entry was posted on Monday, December 19th, 2011 at 11:11 am and is filed under Flood Protection. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

  • Sponsor Resources

    Flood Panel (Standard)
    Flood Panel, a flood barrier

     
    Panel-and-Post System
    Panel and Post System

     
    Puddle Panel
    Puddle Panel, a flood shield

     
    Hinged Flood Gate
    Hinged Flood Gate

     
    Pedestrian Flood Door
    Pedestrian Flood Door (Man Door)

     
    Flood Log
    Flood Log, modular flood barriers

     
  • RSS Google News: Flooding

    • High tide flooding along NC coast expected to increase in coming years - StarNewsOnline.com
    • Police recover body of 57-year-old grandmother in Traralgon after flooding - ABC News
    • UK weather: Devon and Cornwall hit by heavy rain and flooding - The Guardian
    • Clean-up operation in Wexford after flash floods - RTE.ie
    • State of emergency declared as West Coast prepares for flooding under red warning - Stuff
    • Was the flooding at Rainy Lake this spring preventable? - WDIO
    • Heavy flooding continues in Nogales - KOLD
    • Heavy rain predicted again in Japan, risk of landslides, flooding - Kyodo News Plus
    • Exclusive 9 day forecast: Possible flooding expected this week - KTSM 9 News
    • 'It's like a raging river' | Charlotte neighbors seeking solutions to flooding issues they say are caused by Charlotte Metro Credit Union - WCNC.com
    • Heavy rain lashes Midwest and Wheatbelt causing flash flooding, damage - ABC News
    • 50 killed and many displaced in northern Nigeria flooding - CNN
    • Flooding Cancels 2022 Bonneville Motorcycle Speed Trials - UltimateMotorcycling.com
    • Marquette County Road Commission seeks state funding after May flooding - WLUC
    • Oglesby: No progress yet on fixing Heritage and Oakwood avenues basement flooding - Shaw Local
    • Afghanistan: Flash floods kill dozens in Parwan province - The Indian Express
    • Flooding kills over 100 across much of continent - Chinadaily.com.cn - China Daily
    • 'We finally have the funding': Federal investments aim to fix Metro East floods - KSDK.com
    • Feds approve emergency funding to repair Death Valley roads damaged by flooding - News3LV
    • City-parish dismantles part of man's ring levee constructed to prevent flooding - WBRZ
  • Editor

    Donna Conneely
  • Pages

    • Home
    • About Flood Barrier USA
    • Flooding News
    • Contact Us
Flood Panel - commercial flood protection experts

Copyright © 2022 - Flood Barrier USA | Entries (RSS) | Comments (RSS)

Website design by Art Zenith