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Diane Publishing Books
Flood Insurance: More Information Needed on Subsidized Properties
Alicia Puente Cackley (au)
The Fed. Emergency Mngt. Agency (FEMA), which administers the Nat. Flood Insurance Program (NFIP), estimated that in 2012 more than 1 million of its residential flood insurance policies -- about 20% -- were sold at subsidized rates; nearly all were located in high-risk flood areas. Because of their relatively high losses and lower premium rates, subsidized policies have been a financial burden on the program. Due to NFIPäó»s financial instability and operating and management challenges, GAO placed the program on its high-risk list in 2006. The Biggert-Waters Act eliminated subsidized rates on certain properties and mandated this study of the remaining subsidized properties. It examines (1) the number, location, and characteristics of properties that continue to receive subsidized rates compared with full-risk rate properties; (2) the information needed to estimate the historic cost of subsidies and establish rates for previously subsidized policies that reflect the risk of flooding; and (3) options to reduce the financial impact of remaining subsidized policies. Tables and figures. This is a print on demand report.
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