Kousky, Carolyn & Kunreuther, Howard. Addressing affordability in the national flood insurance program. Retrieved from https://doi.org/doi:10.7282/T31N82XX
Subject (Geographic - Hierarchical) Country: UNITED STATES
Subject (Geographic - Hierarchical) Country: UNITED STATES State: New Jersey County: Ocean County
Subject (Topical)Climate; Climate change; Climatic changes; Flood insurance; Global warming; Insurance--Law and legislation; Insurance premiums; Risk (Insurance); Subsidies
DescriptionThis issue brief addresses the following question: “How might the National Flood Insurance Program (NFIP) provide insurance to residents who may require special treatment, such as low-income homeowners residing in flood-prone areas, because they cannot afford the higher risk-based premiums?” The authors make the case that the NFIP must address affordability, but that this should not be done through discounted premiums. It is crucial that communities and homeowners obtain accurate information about the risks they face. For low- and middle-income residents who cannot afford flood insurance coverage at risk-based premiums, the authors propose an explicitly means-tested voucher program, coupling this voucher program with a loan program for investments in loss reduction measures which would be tied to the property and made affordable by reductions in the NFIP risk-based premium. This issue brief also provides background on the NFIP and the Biggert–Waters Flood Insurance Reform Act. At the end, it also examines the impact of the new legislation and new flood hazard maps in a case study of Ocean County, New Jersey and details on how to structure a joint voucher and loan program.
Organization NameNew Jersey Environmental Digital Library
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