WASHINGTON D.C. – SmarterSafer.org – a coalition of taxpayer watchdogs, environmental groups, insurers, and housing organizations – issued a statement on flood insurance reforms in advance of a US Senate Appropriations Homeland Security Subcommittee hearing today on the future of the National Flood Insurance Program.
In a statement, SmarterSafer.org said, “As rising seas and stronger storms take hold, reform of the National Flood Insurance Program has taken on new urgency. Without drastic action, the program could soon be sunk by a debt load that is $24 billion and will grow with any future major events, putting both policyholders and taxpayers in jeopardy. We must begin reforming flood insurance to involve the private sector, put more emphasis on mitigation, and, over time, implement risk-based rates. Doing anything less would be a recipe for disaster.”
The National Flood Insurance Program took a blow earlier this year with a vote by Congress to roll back badly needed reforms in the Biggert Waters Flood Insurance Reform Act of 2012. Those measures, which recognized the imminent threat to the program from the rising cost of storms and floods, removed subsidies that had long kept rates below their true level of risk.
SmarterSafer.org has long promoted measures that would make the National Flood Insurance Program, and our nation’s overall disaster policy, more fiscally and environmentally sustainable. For more information on the coalition’s recommendations, please go to SmarterSafer.org.