Flood Insurance: The Fate of the NFIP in the Wake of Hurricane Irma
Location
Larry Walker Room, Dean Rusk Hall
Start Date
2-3-2018 11:15 AM
End Date
2-3-2018 12:25 PM
Description
Georgia was one of many South-Eastern states to suffer devastating effects from a spate of recent hurricanes. Hurricane Irma served a shocking reminder of the damage caused by floods, especially to those in vulnerable flood zones. It is in the aftermath of such events that the National Flood Insurance Program (NFIP) and other flooding mitigation efforts receive extra attention. While NFIP policyholders in Georgia file their claims for relief, the future of the Program is uncertain. Without reauthorization, or extension, by December 8th the NFIP would lose such key authorities as the ability to borrow large sums from the Treasury or issue new contracts.
The Program undoubtedly has its critics who argue that it is based on outdated flood zone maps and inefficiently spends money on rebuilding vulnerable homes. However, many of those who live in vulnerable flood zones do so out of affordability. For them, their NFIP coverage is indispensable because private flood insurance is either prohibitively expensive or unavailable. Solutions, such as the NFIP’s Community Rating System (CRS), have emerged from this tension. The CRS incentivizes community efforts to mitigate flooding beyond the minimum standards by reducing flood insurance premiums for the community’s property owners.
Flood Insurance: The Fate of the NFIP in the Wake of Hurricane Irma
Larry Walker Room, Dean Rusk Hall
Georgia was one of many South-Eastern states to suffer devastating effects from a spate of recent hurricanes. Hurricane Irma served a shocking reminder of the damage caused by floods, especially to those in vulnerable flood zones. It is in the aftermath of such events that the National Flood Insurance Program (NFIP) and other flooding mitigation efforts receive extra attention. While NFIP policyholders in Georgia file their claims for relief, the future of the Program is uncertain. Without reauthorization, or extension, by December 8th the NFIP would lose such key authorities as the ability to borrow large sums from the Treasury or issue new contracts.
The Program undoubtedly has its critics who argue that it is based on outdated flood zone maps and inefficiently spends money on rebuilding vulnerable homes. However, many of those who live in vulnerable flood zones do so out of affordability. For them, their NFIP coverage is indispensable because private flood insurance is either prohibitively expensive or unavailable. Solutions, such as the NFIP’s Community Rating System (CRS), have emerged from this tension. The CRS incentivizes community efforts to mitigate flooding beyond the minimum standards by reducing flood insurance premiums for the community’s property owners.