FEMA report: Flood insurance hikes will drive 1 million from market

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A FEMA report obtained by The Associated Press under the Freedom of Information Act said the agency estimates one million fewer Americans will buy flood insurance by the end of the decade

to more accurately reflect risk, but also make the program more solvent. It’s a response in part to criticism that taxpayers were funding big payouts when coastal mansions in risky locations flooded.

“We are talking the basic economic health, I think of not only our households and businesses, but our communities at large,” if fewer people buy flood insurance, he said. The president announced modest steps to combat climate change and promised more robust action to come. But critics like Sen. Bob Menendez, D-N.J., said affordability is a problem and FEMA didn’t disclose the impact of those higher costs.

Jim Rollo, a New York-based insurance agent, said he’s seeing a change in some buyer attitudes. Some seem more skeptical about properties that have previously flooded and have higher premiums. Others “roll the dice” and forego costly insurance if it’s not required.Congress should create an affordability program for people struggling to buy insurance and fund efforts to improve flood protections, said Joel Scata, a lawyer at the Natural Resources Defense Council, an environmental advocacy group.

 

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