Feature

Hurricanes and the National Flood Insurance Program: Is Congress Paying Attention?

By Robin Kundis Craig
Coastal storm-related damages  account for roughly two-thirds of    NFIP payouts over the last 35 years.

Coastal storm-related damages account for roughly two-thirds of NFIP payouts over the last 35 years.

iStockphoto.com

The National Flood Insurance Program (NFIP) provides flood insurance to people living in flood-prone areas. Implemented through the Federal Emergency Management Agency (FEMA), the program makes insurance available in flood-prone communities that adopt and enforce floodplain management standards. In principle, federal flood insurance becomes an incentive for communities to reduce their overall flood risk. Indeed, FEMA estimates that the floodplain management measures that the NFIP induces save the nation $1.87 billion per year in flood damage. Nevertheless, federal flood insurance has more often become an incentive for people to build and develop in risky areas, putting the whole program on shaky financial ground.

Premium Content For:
  • Real Property, Trust and Estate Law Section
Join - Now