C3 Solutions makes the case for reforming the National Flood Insurance Program.
- The NFIP is more than $20 billion in debt, fails to protect citizens, and must be reformed.
- In order to fix the NFIP’s current problems, the government should end the practice of grandfathering in rates, which encourages bad building practices.
- The government should unlock barriers to allow private insurers into the market. This would result in more accurate rates and less economic damage.
- It should also invest in natural, cost-effective solutions to help mitigate flooding risks.
“The federal government must reform its coastal resilience efforts and natural disaster policies to better adapt. One of the largest policies in need of reform is the National Flood Insurance Program (NFIP). The NFIP, operated by the Federal Emergency Management Agency (FEMA), is poorly structured and places undue burdens on taxpayers because it subsidizes second homes and allows owners to pay below-market rates for insurance.”
Read the policy paper here.