Posted On: November 18, 2005, 2:44 pm CST

Posted By: Ken Kaltwasser

I think Congress needs to make major changes to the National Flood Program as a start. It seams the higher the premium the less participation and therefor the higher the losses! This becomes a death spiral and is what prompted NFIP to introduce the Prefered Risk policies. I think everyone that has a Federal backed mortgage (almost everyone) should be forced to carry flood coverage the same as property coverage and regardless of the flood zone. This would spread the risk and allow the premium to be very low. When someone no longer has a mortgage they can choose to carry coverage or not to carry the coverage. If they choose to not to carry the coverage they would understand there will be no Federal help coming in the event of a loss. This would free up a lot of funds that are currently being put into the NFIP that could be used to fund a program to help private carriers from going under from a major cat.