After FEMA overhaul, hundreds of thousands of Americans are forgoing federal flood insurance
Hundreds of thousands of Americans have dropped their flood insurance through the National Flood Insurance Program, or NFIP, since last October, E&E News found in a review of federal records. The sharp decline in coverage comes after the Federal Emergency Management Agency overhauled the program’s insurance pricing system, a move that was meant to make premiums more accurately reflect the flood risk of a property.
When the agency reviewed the NFIP last year, it discovered inequities in the way that insurance premiums were priced. Homes in the less risky areas of flood zones were overpaying for their premiums, and shouldering a higher burden of the costs of flood risk. The system overhaul was meant to address these inequalities, adjusting premium rates according to level of risk.
“[W]e have a responsibility to make sure that we have actuarily sound, fair, …