Saturday, July 17, 2010

Quick Fixes to the NFIP

Hey! Some legislation may just sneek through the 111th Congress on the National Flood Insurance Program (NFIP) authorized by 42 USC Sections 4001 and following.

Here are my quick fixes!

Some food for thought.
  • The NFIA was written by the insurers and lobbied through Congress by them! Why?
  • 20% of all losses are contents! Why offer contents coverage at all?
  • 50% of all losses are in unmapped areas or for unmapped hazards--erosion, mudslide, levee or dam failure, etc? Why?
Some quick fixes!
  1. Eliminate all coverage for installed or uninstalled carpets.
  2. Eliminate coverage for all structures that don't meet IRC 1986 requirement that they are primary residences.
  3. Reinforce the current law that mandates no insurance for hazards not mapped.
  4. Avoid grandfathering in properties prior to current rate maps. There is a policy in force allowing grandfathering where FEMA has updated maps through better data not administrative error.
  5. Eliminate the definition A-2 in all NFIP policies.
  6. Go back to original application language which is incorporated into policy--any property found post flood to be in violation of any federal, state, or local flood plain management law or where a flood easement is in place (USACOE has over 100,000 properties for which they hold an easement to flood in high water and the occupants of those structures have flood insurance)!
  7. Any subsidized rate ends after the first reported and covered loss in any amount.