About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


1 [1] (September 10, 2018)

handle is hein.crs/crsmthzzbik0001 and id is 1 raw text is: CRS INSIGHT Closing the Flood Insurance Gap Updated September 10, 2018 (IN10890) Related Author SDiane P Horn Diane P. Horn, Analyst in Flood Insurance and Emergency Management dhom(&crs bc.gov, 7-3472) There is a large flD inurancg in the United States, where many people that are exposed to flood risk are not covered by flood insurance. The National Flood Insurance Program (NFIP) is the primary source of residential flood insurance. More than 22 000 commnities participate in the NFIP, with ove 5 millionpoicies providing J1.28 rillion in coverage. The NFIP identifies areas at high risk of flooding as Special FloQd Hazar (SFHAs). Property owners are urchae flod insuranc only if (1) their properties are in SFHAs, (2) their mmnii ii te in h FIP and (3) they have federally backed m rtgas. Because the SFHA boundary is central to NFIP mapping, it may create a false belief that flood risk changes abruptly at the boundary and that properties outside the SFHA are safe and do not need flood insurance. However, about 2000 of NFIP claims are for properties outside SFHAs, and all 50 states have experienced floods in the last fiveyears- Recent floods highlight the issue of high uninsured losses. For example, in the OctQber 2015 South Carolina floods, the average NFIP penetration rate in counties with a federal disaster declaration was 5% (Table 1). Nearly 90% of policies in South Carolina were concentrated at the coast, but the flood damage was primarily inland, where few residents were insured (Figurt1). Figure 1. Residential Penetration Rates of NFIP Flood Insurance in South Carolina Counties with FEMA Individual Assistance Declarations for 2015 South Carolina Floods (DR-4241)