Climate change or no climate change, NFIP has always been and continues to be mismanaged. Costs going up about 60% over a 10-year period is less than 5% per year (not as scary as 60%), but we will probably still be having this same conversation in 2030. The perpetual hand-wringing and analysis have amounted to nothing and there is zero political courage to do anything about it. Value of flood-prone properties will likely continue to rise since there is no disincentive to not build at least in part due to the highly subsidized NFIP flood insurance. If flood insurance was priced appropriately, then the increased cost of property ownership would likely make the property itself (likely development, as well) less attractive. Probably a significant oversimplification, but the situation is really not all that complex.
The NFIP tried to rectify the situation years ago through rate equity for high risk areas. When the Florida congressional delegation found out about, they screamed that it was killing the Florida homebuilding industry. NFIP backed off. The problem will never be resolved as long politics is involved.
And yet they moved beach front homes in SC to lower premium zones and bfe’s.
Climate change or no climate change, NFIP has always been and continues to be mismanaged. Costs going up about 60% over a 10-year period is less than 5% per year (not as scary as 60%), but we will probably still be having this same conversation in 2030. The perpetual hand-wringing and analysis have amounted to nothing and there is zero political courage to do anything about it. Value of flood-prone properties will likely continue to rise since there is no disincentive to not build at least in part due to the highly subsidized NFIP flood insurance. If flood insurance was priced appropriately, then the increased cost of property ownership would likely make the property itself (likely development, as well) less attractive. Probably a significant oversimplification, but the situation is really not all that complex.
What!?!?!? A government ‘insurance’ program does collect enough ‘insurance’ premium compared to the indemnity. SHOCKER!
Sorry, “does not” instead of “does”.
This program subsidizes many wealthy homeowners.
The NFIP tried to rectify the situation years ago through rate equity for high risk areas. When the Florida congressional delegation found out about, they screamed that it was killing the Florida homebuilding industry. NFIP backed off. The problem will never be resolved as long politics is involved.