The historic flooding in Louisiana last week destroyed more than 60,000 homes and displaced hundreds of thousands of homeowners. It also renewed questions about the National Flood Insurance Program.
Reuters reported Sunday on the number of homeowners who did not live in designated high-risk flood zones, and therefore didn’t have flood insurance.
Now facing total losses, the Federal Emergency Management Agency is encouraging those homeowners to take out low-interest Small Business Association loans to rebuild. From the Reuters story:
Those residents without flood insurance are eligible for up to $33,000 in FEMA individual disaster assistance funds, although most will likely receive less than that, based on payments following other major disasters…
FEMA spokesman Rafael Lemaitre said the individual assistance is intended to supplement insurance and to provide short-term relief for immediate needs.
Other coastal communities are thinking long and hard about what a 1,000-year flood (with or without a hurricane) would do to their communities. The Tampa Bay Timesran a story over the weekend that supported spreading the risk by once again making flood insurance a mandatory part of homeowner’s insurance. From the article:
There is an alternative out there if anyone in D.C. is willing to look. It’s simple. It’s proven. It may not be universally beloved, and could use refining, but it’s better than seeing the National Flood Insurance Program go billions and billions further in debt at the expense of taxpayers.