Lawmakers have until the end of May to debate meaningful reforms to the NFIP — the National Flood Insurance Program that has been in over $20 billion in debt (and growing) for many years. To fix that program, one positive legislative proposal would direct the NFIP to base premiums on a property’s replacement cost value, as private insurers do, instead of continuing the practice of using national averages that fail to capture relevant property-level differences in valuation and risk. The NFIP’s current approach undercharges wealthy, coastal customers and overcharges lower-income homeowners, making policyholders with the fewest means subsidize those with the most expensive homes. Charging homeowners accurate, risk-based premiums would end this unfairness and improve the NFIP’s financial position.

This proposal is an excellent start and deserves careful consideration.  You can read our full op-ed at Inside Sources.

It’s Time for Congress to Reform the Flood Insurance Program