West Virginia seeks to open flood insurance to the private market

flood insurance

States begin taking matters into their own hands when it comes to flood protection

As U.S. federal lawmakers continue to work to find a solution to the problems facing the National Flood Insurance Program, states are beginning to take steps to address these issues on their own. Typically, homeowners can only find the flood protection they need through the federal program. The program, however, is crippled by debt that has made it nearly impossible for the program to provide coverage adequately. Because federal lawmakers have been slow to resolve the issues plaguing the federal program, states have been making moves to engage private insurers.

Lawmakers have high hopes for coverage offered by the private market

flood insuranceLegislation that would allow private insurance companies to provide flood protection in West Virginia has been making its way through the state’s Legislature. Several lawmakers have shown their support for the legislation, suggesting that opening the flood insurance market to private companies may help homeowners better protect themselves. While lawmakers have shown support for the legislation, it is uncertain exactly how it would impact the homeowners and flood insurance market of the state.

Insurers are somewhat concerned with the risks they face in some states

Insurers in West Virginia have shown interest in participating in the market. Flood protection is mostly a federal matter because insurance companies have expressed their concerns over the liability issues that exist with natural disasters and the frequency at which floods happen in some parts of the country. State lawmakers claim that West Virginia’s exposure to risk is different than that seen in other states, meaning that the state should not be subjected to the expansive approach of the National Flood Insurance Program.

Florida also seeks to open flood protection to the private market

Florida is another state that is working to open flood coverage to the private market. The ongoing problems associated with the National Flood Insurance Program have begun to weigh on homeowners. Flood protection is becoming more expensive and many homeowners have expressed difficulty when it comes to being able to manage these costs. Opening up to the private market may help address some of these issues, but flood protection is never likely to be seriously inexpensive.

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