Government watchdog report finds increase in repeatedly flooded properties, suggests changes to flood insurance program - Entrepreneur Generations

Despite billions of dollars the federal government has spent over the past 30 years on flood mitigation projects, a new Government Accountability Office report says the number of properties damaged by floods more than once has increased over the past decade, especially in Louisiana, Texas, and Florida.

It also notes that the Federal Emergency Management Agency's National Flood Insurance Program "premium prices that property owners pay do not fully reflect flood hazards for insured property, leaving the federal government financially exposed to this risk," Bill Lucia reports for Route Fifty. The report says that reducing the flood risk of insured properties and/or increasing premiums will mitigate the program's financial shortfalls, but says "structural reforms" to premium rates will also be necessary.

The NFIP has been struggling for years, but because of big spikes in claims paid due to disasters, not a gradual increase. FEMA "has borrowed about $36 billion from the Treasury to pay claims during disasters over the past 15 years or so. Congress cancelled $16 billion of this 'debt' in 2017, but about $20 billion remains outstanding," Lucia reports.

The report dovetails with recently released scientific research showing that far more U.S. properties are at substantial risk of flooding than FEMA maps indicate, since FEMA maps don't factor in climate change and don't use the most recent data available.

from The Rural Blog https://ift.tt/2NMQcZu Government watchdog report finds increase in repeatedly flooded properties, suggests changes to flood insurance program - Entrepreneur Generations

Posted by Entrepreneur Generations

Tweet