How to Fix Nation’s Flood Insurance Program

By | December 31, 2010

  • January 3, 2011 at 1:23 am
    Michael L. Smith CFM says:
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    Jimi Grande’s suggestions are worthy of consideration by FEMA. The need to keep the NFIP functioning is paramount. The question of course is how to best keep it functioning as a viable government program while limiting the costs to the tax payer. The computerized mapping system, adherence to local building ordinances, NFIP buyout programs, emphasis on limiting construction in the SFHA, the CRS (Community Rating Service) have all strengthened the flood insurance program over the years. It should also be noted that the enormous costs attributed to Katrina and the consequences of the New Orleans breach should not be assumed to be the failure of NFIP program. So many other factors were at play.

    I would add to one recommendation and that would be in regard to education. FEMA provides incentives for communities by way of the CRS to educate their residents on flood insurance issues. Since each community has its own unique flood issues the best source for flood information should come directly from the county (local jurisdiction) level. Additionally, all banks, mortgage companies, real estate companies, insurance agencies, escrow companies and other entities conducting business within the SFHA should have an online training program, including exams and an annual certification process. By utilizing local jurisdictions and the internet for such education and training purposes it could be a significant cost savings to FEMA and a much more “flood aware” community.

    Michael L Smith CFM

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