Ohio lawmakers look for alternative to flood insurance
In light of recent flooding disasters, as well as major natural disasters in general, state officials throughout the U.S. are beginning to take measures to mitigate the country’s exposure to these catastrophes in the future. In Ohio, lawmakers are beginning to push more aggressively for federal funding that could help bolster the state’s defenses against floods. State officials claim that flood insurance is simply not enough of a safety net for homeowners that could fall victim to flood disasters.
Insurance may not be adequate safety net for consumers
Flood insurance is a matter for the federal government, managed through the National Flood Insurance Program. The program itself is managed by the Federal Emergency Management Agency, which has been working to make adjustments to its flood maps recently that could have a major impact on the cost of flood insurance coverage. The National Flood Insurance Program (NFIP) has, for several years, been struggling to overcome a financial crisis of its own, which has been compounded by 2012’s Hurricane Sandy. Simply put, the federal program scarcely has enough money to cover the costs of major flooding disasters that could take place in the future.
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Financial troubles encourage Ohio lawmakers to seek other forms of disaster mitigation
The problems that exist with the National Flood Insurance Program are one of the reasons that Ohio officials are looking to take matters into their own hands. Governor John Kasich has been pushing for more federal money that could help develop new flood control structures along the Blanchard River in the northern parts of the state. The Governor claims that approximately $3 million is needed to complete risk assessments of the region and determine what needs to be done to protect homeowners.
Flood insurance remains relatively rare
Homeowners and flood insurance are two issues that have proven to be somewhat controversial in recent years. While flood insurance is considered very important in some parts of the U.S., relatively few homeowners actually have this type of coverage. Private insurers are not eager to provide this coverage due to the financial risks that are associated with flooding disasters. Indeed, these risks are the primary reason why many property insurers decide not to participate in risky markets like Florida.