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The clock is ticking on flood insurance reform

WASHINGTON – April 8, 2016 – Taxpayers for Common Sense President Ryan Alexander, National Wildlife Federation President Collin O’Mara, and National Association of Realtors President Tom Salomone indicate that the National Flood Insurance Program (NFIP) is on the verge of a financial crisis and that reforms need to be made to ensure claims are paid.
Disasters with a price tag exceeding $1 billion in flood damages were previously limited to one or two per year, but now occur at least five to 10 times per year, which has led the NFIP to be $23 billion in debt.
They say, “Giving the NFIP much-needed updates would both reduce the program’s burden on taxpayers and lower the economic impact of disasters. The need for reform is great, and in a time when it seems impossible for rivals on a major issue to come together and work toward a solution, we are changing the debate.”
They recommend that the private sector be encouraged to provide consumers with choices in addition to the NFIP; the government do more to encourage resiliency and provide incentives for policyholders to build higher or relocate to higher ground away from our coasts and waterways; and the NFIP improve its mapping processes and procedures to eliminate risks, which would lower rates over time.
“A robust, competitive private flood insurance market could potentially offer comparable options at lower costs than the NFIP. That’s a win for consumers,” they say.
Source: The Hill (04/07/16) Alexander, Ryan; O’Mara, Collin; Salomone, Tom
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Source: Florida Realtors Feed

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