Recent Editorial Perspectives on Flood Insurance in the U.S.
Date: October 18
The Washington Post: The Burden of Taxpayer-Funded Flood Insurance
The aftermath of Hurricane Helene has resulted in damages exceeding $30 billion. Just a short time later, Hurricane Milton added nearly $50 billion to that staggering total. With only six weeks remaining in this hurricane season, the Small Business Administration’s disaster loan program has already exhausted its funds. Meanwhile, more tropical storms are brewing over the Atlantic Ocean. This raises an important question: who bears the financial responsibility for these disasters?
Due to private insurers typically viewing flood coverage as unprofitable, the federal National Flood Insurance Program (NFIP) steps in to provide essential protection for homeowners facing flooding risks. However, this program is not without its challenges. The NFIP operates under the Federal Emergency Management Agency (FEMA), which is currently grappling with misinformation and navigating complex situations as it strives to deliver critical assistance to those affected by Hurricanes Helene and Milton.
The NFIP offers approximately $1.3 trillion in coverage across more than five million policies nationwide, highlighting its significant role in safeguarding homeowners against flood-related losses.
