New legislations could make flood insurance inaccessible in the state
Flood insurance may become more difficult to obtain for homeowners in Oklahoma if new legislations take effect. The Oklahoma Floodplain Managers Association has warned state lawmakers that new legislations that are making their way through both the Senate and the House of Representatives could mean that the state can no longer participate in the National Flood Insurance Program. The federal program is typically the only place that homeowners throughout the country can find flood insurance protection.
Legislations seek to prohibit cities from banning oil and natural gas drilling, which could affect flood insurance availability
The legislations would prohibit cities from regulating oil and natural gas drilling operations. These operations can have a severe impact on the environment, effectively making areas that are already prone to flooding more exposed to flood risks. The National Flood Insurance Program requires areas that are in high risk zones to make efforts to reduce the damage that flooding can cause as a mitigation initiative. If communities cannot adhere to this ordinance, they cannot receive coverage through the federal program.
Federal program is typically the only place that people can find flood insurance coverage
The National Flood Insurance Program was established in 1968 and was meant to provide effective coverage for homeowners and businesses. Private companies offer coverage through the program, but do not provide this coverage on their own. This is because they are unwilling to expose themselves to the extreme financial risks that are associated with flooding, especially when it comes to properties that are located in coastal zones. Over the past few years, the federal program has struggled with serious financial issues that have lead to a dramatic increase in flood insurance premiums.
New legislations could have a serious impact on housing market and the cost of flood insurance protection
If the new legislations are successful, flood insurance coverage could become much less common or significantly more expensive in some parts of the state. This could have an impact on the housing market and could leave consumers exposed to serious risks that they cannot handle without insurance protection.