In response to the amendment filed by Rep. Candice Miller (R-Mich) to the HR 1309 (the National Flood Insurance Program), called the Flood Insurance Reform Act of 2011, which would end the program, the National Association of Mutual Insurance Companies (NAMIC) has asked Congress not to proceed forward.
According to senior vice president of federal and political affairs Jimi Grande, of NAMIC, “Eliminating the National Flood Insurance Program is the worst policy option out there.”
He explained that while the National Flood Insurance Program (NFIP) is not perfect, it is the only tool currently available to make certain that individuals at risk of a flood are assisted in covering the necessary costs. Grande added that by removing this option, flooding will be more expensive to taxpayers.
Miller’s amendment to HR 1309, would have the entire NFIP closed by the start of next year. Instead, the bill will require the states to establish their own regional insurance plans in order to redistribute the risk of flooding.
Under Miller’s plan, the Federal Emergency Management Agency is still permitted to help to create flood maps and to assist the private sector and the states themselves in insuring against flood loss.
Miller has made her dislike of the NFIP very clear, saying, having asked why the federal government has taken part in flood insurance in any way. She called it “ridiculous” and said that a “lousy job” has been done by the federal government regarding its role in flood insurance.
Primarily due to the assistance it provided to communities in the wake of Hurricane Katrina, the NFIP currently owes the U.S. Treasury approximately $18 billion.