Arian Campo-Flores of The Wall Street Journal reports that the National Flood Insurance Program is updating its pricing methodology.
- The National Flood Insurance Program (NFIP) has recently overhauled its pricing methodology to have premiums more accurately reflect flood risk.
- Previous pricing of NFIP premiums did not accurately reflect flood risk which incentivized poor building practices and more people living in harm’s way, leading the program to accumulate $20 billion of debt.
- While costs of premiums may increase, having more accurate rates puts the onus of flood risk on property owners rather than taxpayers across the country.
Read the full article here.