Taxpayers for Common Sense President Ryan Alexander, National Wildlife Federation President Collin O’Mara, and National Association of Realtors President Tom Salomone indicate that the National Flood Insurance Program (NFIP) is on the verge of a financial crisis and that reforms should be made to ensure claims are paid.
The clock is ticking on flood insurance reform
Disasters at a price tag exceeding $1 billion in flood damages were previously restricted to one or two per year, however right now occur at least five to 10 times per year, which has led the NFIP to become $23 billion in debt.
They say, “Giving the NFIP much-needed updates would both reduce the program’s burden on taxpayers and lower the economic impact of disasters. The necessity for reform is great, and in a period when it seems impossible for rivals on a major issue to get together and work toward a remedy, we are changing the debate.”
They recommend that the private sector be asked to provide consumers with choices aside from the NFIP; the government do more to stimulate resiliency and offer incentives for policyholders to build higher or relocate to higher ground away from our coasts and waterways; and the NFIP improve its mapping processes and procedures to eliminate risks, which will lower rates eventually.
“A robust, competitive private flood insurance market could potentially offer comparable options at lower costs than the NFIP. That’s a win for consumers,” they say.
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