FLOOD INSURANCE

From Texas to Wisconsin and a lot of places in between houses are litterally underwater. It is more than your average storm damage, it is a catastrophic events for thousands of people. How are homeowners protected from flood damage?
The National Flood Insurance program is the answer. Following are a brief description and the history of the program:

The National Flood Insurance Program was created in 1968 to protect homeowners and reduce federal costs from natural disasters. Run by the Federal Emergency Management Agency, (FEMA) it provides nearly all the flood coverage in the United States. Private agents sell the policies. Homeowners can get up to $250,000 in structural coverage and an additional $100,000 for contents.
On average, residential premiums are about $400 per $100,000 of coverage. The rates typically do not reflect the real risks and therefore shift costs from policyholders to taxpayers generally.
After the deadly 2005 hurricane season, the Government Accountability Office added the program to a short list of "high risk" areas in the government that the agency believes deserve urgent attention.
The National Flood Insurance is not a self sustaining program, it subsidizes homeowners. There are attempts in congress to make the homeowners pay the true cost of the coverage. With the current season barely underway and the losses already sky high, follow the congressional debates about the amount of subsidies needed to cover the mounting losses.
Should ALL the taxpayers continue to support those who choose to build their homes in flood plains?
Send me your comments and suggestions at info@p2dunding.com.
For more details, log on to: www.FloodSmart.Gov