The Trump administration has proposed cutting $190 million in funding for updating U. S. maps of flood-prone areas.
A consumer group has said that the move could result in higher insurance rates. Furthermore home-building will take place in risky areas.
Flood-mapping provides important details about areas which are safe for building. It also sets guidelines for flood insurance and how to price coverage.
Without funding, and therefore updated U. S. maps, the building industry will rely on old U. S. maps. Construction in flood-prone areas would follow.
Flood-mapping provides important details about areas which are safe for building. It also sets guidelines for flood insurance and how to price this coverage.
Without funding, and therefore updated maps, the building industry will rely on old maps. Construction in flood-prone areas would follow.
SmarterSafe.org has called for the National Flood Insurance Program (NFIP), to determine flood-prone areas. Furthermore to price flood insurance premiums using these risks as guidelines. This could be achieved by using cutting-edge technology.
In addition, communities could be offered incentives to boost and improve natural buffers against floods.
The program is $24.6 million in debt to the U. S. Treasury Department. The debt was increased due to claims from Hurricane Katrina in 2005 and Superstorm Sandy in 2012.
Homeowners need to have flood insurance before a mortgage can be completed. Most Americans obtain flood insurance through the federal program. However, a small market for private flood insurance has sprung up in flood-prone states such as Florida.
According to a poll conducted by the Insurance Information Institute, only 14 per cent of Americans are insured against flooding. This percentage has remained steady since 2009.
Most disasters are covered under a standard homeowners policy. However, flooding is not. Many homeowners do not read their policies thoroughly and are therefore unaware of this fact.
Some people in high-risk areas still don’t purchase flood insurance. They forget that flooding is not only caused by large hurricanes but also excessive snow melt-off or heavy rain.