Federal insurance program continues to struggled beneath massive debt
The U.S. Congress may be ready to finally find a solution to the problems that have crippled the National Flood Insurance Program. The program has been the only place that homeowners could find flood protection for several years, but the program itself has struggled under financial strain for nearly as long as it has existed. After being hit by several powerful natural disasters, the insurance program is currently more than $27 billion in debt, which has affected its ability to pay claims related to flood damage.
Legislators could resolve floor protection problems by the end of the month
In 2012, the insurance program became the focus of the Biggert-Waters act, which aimed to address many of its financial issues by changing the way the program offered coverage. The legislation caused flood insurance rates to spike in many parts of the country, making it financial unfeasible for some homeowners to maintain their coverage. Now, federal lawmakers are ready to address this issue and may be able to find a solution before the end of this month.
New legislation aims to resolve outstanding insurance issues
New legislation, supported by Senator Mary Landrieu, has been introduced to the Senate. The legislation aims to make flood protection more affordable for homeowners. Per the legislation, FEMA, which manages the National Flood Insurance Program, would be required to reconsider the changes it has made to its flood maps. These flood maps often dictate the actual cost of flood protection. The legislation would also require FEMA to take into consideration levees that are used as a form of flood protection for communities in so called “high risk” parts of the country.
Reform law of 2012 may be doing more harm than good for homeowners
Many lawmakers are beginning to claim that the Bigger-Waters Act of 2012 had little to no impact on the problems experienced by the National Flood Insurance Program. Some argue that the law has simply made insurance protection more of a financial burden on homeowners. These homeowners have been quick to voice their displeasure concerning the rising rates of flood protection.
