Flood Insurance Program Unsustainable With Underfunding

Feb 12, 2018

STRANDED CATTLE - A group of cattle stranded by rising floodwaters near Conroe, Texas during aftermath of Hurricane Harvey.
Credit Courtesy: US Army Reserve Photo

FLOOD INSURANCE UNDERFUNDED - As part of the budget deal President Trump signed into law last Friday,  the "National Flood Insurance Program" was extended until next month. But the deal fails to provide a long-term fix for the underfunded program.  The need for flood insurance  became very clear after Hurricane Harvey put parts of Texas and Louisiana under water.  The problem is the National Flood Insurance Program is not sustainable the way it's currently set up.  Seth Chandler specializes in insurance law at the University of Houston Law Center,  he explained the details to Texas Public 

Seth Chandler, University of Houston Law Center
Credit Courtesy: UH-Law Center file photo

Media. “The main concern is that it is deeply in debt and continues to be a source of taxpayers’ subsidies, so that people in non-flood areas are continuing to subsidize people in flood areas.” Chandler says the continuing resolution the Congress passed simply kicks the can down the road, instead of addressing the problem.  “The way to make it sustainable is to both increase the premiums, particularly in the more flood-prone areas and also to use science to draw maps that more accurately reflect risk.” Lawmakers have until March 23rd to come up with either another short-term extension or a long-term solution for the National Flood Insurance Program.

Credit Courtesy: National Flood Insurance Program