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SOMETIMES,
IT'S GOOD
TO BE A
FOLLOWER.
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MReport @TheMReportNews The MReport
A NEW WAY
FOR THE
NATIONAL FLOOD
INSURANCE
PROGRAM
e National Flood Insurance Program
(NFIP) was the topic of discussion at a
House Financial Services Committee
hearing entitled "Preparing for the Storm:
Reauthorization of the National Flood
Insurance Program." e hearing discussed
the affordability challenges for this program
and reforms since the NFIP's inception in
1968.
According to the hearing, in 2018, FEMA
found significant affordability challenges for
lower-income homeowners, as many that are
least able to afford higher premiums tend to
live in the highest flood hazard areas. FEMA
found that "the combination of higher
premiums and lower incomes in the SFHA
creates affordability pressure on households."
Witnesses, in addition to committee
members, included Maria Cox Lamm, South
Carolina Department of Natural Resources,
Christopher Heidrick, Heidrick & Company
Insurance and Risk Management Services,
LLC, Velma Smith, Senior Officer, e Pew
Charitable Trusts, Mabél Guzmán, Broker,
@properties, on behalf of the National
Association of Realtors, Collin O'Mara,
President and CEO, National Wildlife
Federation, and Raymond J. Lehmann,
Director of Finance, Insurance and Trade
Policy, Street Institute.
Mabél Guzmán, speaking on behalf of the
National Association of Realtors, noted that
many homeowners are underinsured, and
coastal areas are not the only areas at risk of
flooding.
"By every measure, floods are getting
worse," said Guzmán in her statement. She
stated that many homeowners are unaware
of the risk, and a restructuring of the
NFIP may be necessary. Collin O'Mara
confirmed Guzmán's statements, noting that
the increasing number of natural disasters
requires a different approach.
"Too frequently, we are responding
to disasters after they occur, giving little
thought and attention to proactively reducing
risk and increasing the resilience of our
nation's vulnerable communities," said
O'Mara in his statement. "Responding after a
disaster is necessary; however, without proper
planning, resilience measures, and insurance,
disasters are much more destructive, and
rebuilding is more difficult."
