In the News – Tag: National Flood Insurance Program

  • Tuesday
    October 30th,
    2012

    Should the Federal Government Be Subsidizing Flood Insurance?

    There is evidence to support the view that the government is actually encouraging citizens to live in areas most in danger of flood damage. According to a 2010 report issued by the Institute for Policy Integrity, Congress has historically set the premium rate too low for flood insurance — effectively subsidizing building in flood-prone areas at the expense of taxpayers at large. This practice has helped drive the fund $19 billion in debt, caused mostly by the unusually severe damage caused by Hurricane Katrina. In addition, the report argued that the environmental effects of the federal government’s flood-insurance policy may be more severe than the financial effects.

    Source: TIME

    Issue(s): Energy and Environment

  • Wednesday
    March 16th,
    2011

    Flooded With Proof, Insurance Industry Turns Climate Change Realist

    Worst of all are the environmental costs. As the NYU Institute for Policy Integrity reports in “Flooding the Market,” “The financial costs of the NFIP are considerable, but they are likely dwarfed by the ecological damages that the program encourages. Floodplains are located near waterways and in coastal zones. These areas tend to be both ecologically significant and sensitive, and they contribute substantial ecosystem services.”

    Source: Triple Pundit

    Issue(s): Energy and Environment

  • Friday
    August 27th,
    2010

    Does Flood Insurance Just Make Things Worse?

    When Hurricane Katrina made landfall in southeastern Louisiana on August 29, 2005, it caused extreme flooding up and down the Gulf coastline. Four years later, the Gulf has made a dramatic recovery—thanks in part to the billions of dollars in aid sent via the national flood insurance program. The hurricane certainly underscored the need for federal aid in the event of a natural disaster. But was the federal flood insurance program the best way to get aid to those in need?

    Source: The New Republic’s Citizen Cohn Blog

    Issue(s): Energy and Environment

  • Thursday
    July 15th,
    2010

    House Debates National Flood Insurance

    Michael Livermore talked about the National Flood Insurance Program, how the program works, and its costs and benefits. Pres. Obama signed an extension to the program, allowing people with properties in flood areas to transact sales on those properties.

    Source: C-SPAN’s Washington Journal

    Issue(s): Energy and Environment

  • Thursday
    July 1st,
    2010

    Congress Extends Flood Insurance Program As Hurricane Hits Gulf

    “The program is in considerable debt and there is no way to get out of it. Instead of dealing with the debt and the structural deficit the program has, Congress keeps kicking the can down the road,” says Scott Holladay, an economics fellow the Institute for Policy Integrity at NYU Law School. He says the program is running a $19 billion deficit since 2005’s record hurricane season.

    Source: Wall Street Journal’s Developments Blog

    Issue(s): Energy and Environment

  • Friday
    June 18th,
    2010

    Federal Flood Insurance Drowning in Red Ink

    Indeed, as an April 2010 studyfrom the Institute for Policy Integrity at the New York University School of Law found, “It would take more than ten consecutive years without a single flood claim for the median premium payments to cover the deficit,” assuming the U.S. Treasury doesn’t charge the program interest on the debt. “Assuming median losses and a 5% interest on the program’s debt,” authors J. Scott Holladay and Jason A. Schwartz continue, “the repayment window rises to over 100 years. The program, as currently structured, will never repay its debt.”

    Source: The New American

    Issue(s): Energy and Environment

  • Sunday
    June 13th,
    2010

    EDITORIAL: Federal fund would prepare us for the Big One

    Consider this a plan that allows the nation to set aside money in advance to pay for these disasters, instead of putting the burden on taxpayers. To cover those costs now, Congress allocates disaster relief money, or the federal government absorbs the cost some other way. For example, Katrina caused the National Flood Insurance Program to rack up $19 billion in debt. The program borrowed the money from the U.S. Treasury and has no plan to pay it back, according to the Institute for Policy Integrity at New York University Law School.

    Source: Newsday

    Issue(s): Energy and Environment

  • Wednesday
    June 2nd,
    2010

    Flood insurance feeds rising tide of debt

    In an April report titled “Flooding the Market,” the Institute for Policy Integrity concludes that the insured are getting a discount from federal taxpayers. Not only that, but the National Flood Insurance Program’s below-market rates combined with huge payouts in recent years has created a $19 billion debt. The Institute’s communications director notes that the debt is racking up $730 million in interest each year.

    Source: Houston Chronicle’s Houston Politics Blog

    Issue(s): Energy and Environment

  • Tuesday
    June 1st,
    2010

    The Oil Spill is Obama’s Katrina if We Waste Both Disasters

    Environmentalists have long-held that the program amounts today to a subsidized destruction of America’s floodplains for the benefit of beachfront vacationers and wealthy homeowners (Rosie O’Donnell, Matt Damon, I’m looking at you). A recent report by New York University’s Institute for Policy Integrity backs up these arguments.

    Source: change.org

    Issue(s): Energy and Environment