Flood Insurance Program is Broke and Broken

financialservices.house.gov

Cmte Financial Services (R)
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Flood Insurance Program is Broke and Broken

Washington, Sep 13 -

House Financial Services Committee Chairman Jeb Hensarling (R-TX) issued the following statement today after FEMA announced it will likely need Congress to increase the borrowing authority of the National Flood Insurance Program:

“For the victims who paid for flood insurance policies with the National Flood Insurance Program, their claims need to be paid and paid now. Helping victims right now is paramount. Congress must then finally get serious about fixing the NFIP because it is not only broke, it is broken.

“Four years ago after Hurricane Sandy, I warned my colleagues in Congress that the National Flood Insurance Program needed serious reform because it was not sustainable and was just one major storm away from needing another bailout. That sadly appears to be where we are today. Because Congress failed to enact reforms over the past four years, the program can’t meet the needs of flood victims without another bailout. To continue as is, with no reforms, is a slap in the face to both homeowners who depend upon it and hardworking taxpayers who have to bail it out once again. The NFIP in its current form is unsustainable and perverse. It is a government monopoly that subsidizes people to live in harm’s way. With pricing structures that do not reflect the reality of risk, it actually encourages the building and re-building – and re-building again – of homes and businesses in flood-prone areas. That is neither smart nor compassionate.

“The Financial Services Committee has produced legislation that will at least begin to make the flood insurance program more stable, affordable and truly safer. I look forward to bringing this legislation to the House soon.

“After Harvey and Irma, it would be insane for the federal government to simply rebuild repetitive loss homes in the same fashion, in the same place. Shame on us if we do, because the fatalities and economic carnage will just continue to rise.”