Words are rarely as emotive as this.
“Unless Congress overhauls the program, more than 180,000 at-risk New Yorkers could find it bankrupt when the next storm strikes.”
That was the conclusion of Steve Ellis, vice president of Taxpayers for Common Sense, writing an opinion article for
Crain’s New York Business. He believes that the flood insurance system is saddled with billions in debt – and that could lead to serious problems should another storm strike.
In the publication, he outlines that the National Flood Insurance Program has a $23 billion debt and “that is only going to grow.” Now he calls on lawmakers to fix the issue before taxpayers need to bail it out – pointing out that the FEMA-run insurance program will be up for reauthorization next year.
Among his recommendations are that Congress inject more private insurers into the flood insurance marketplace to remove the cost and risk away from taxpayers; and he wants the Senate to follow up on the Flood Insurance Market Parity and Modernization Act that was implemented by the House of Representatives, with private policies that “can be used to meet flood insurance purchase requirements for those living in flood zones.” He also wants to see the Senate pass the bill as soon as it reconvenes.
In addition, he suggests that more competition could prompt additional flood insurance options – and that it could potentially lower rates while ensuring higher coverage limits and better coverage. To do this, Congress could bring more private insurers into the marketplace and also implement a “national migration strategy”.
Furthermore, he calls for the introduction of more proactive measures – such as updating building codes and boosting infrastructure.
You can read the article in full
here. Now we want to know what you think of the flood insurance situation? What measures would you like to see introduced? Leave a comment below with your thoughts.
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