Working to Improve our National Flood Insurance Program

Working to Improve our National Flood Insurance Program
07/19/05

As many citizens and communities in Ohio unfortunately know all too well, floods are one of the most destructive and costly of natural disasters.

In just this past year, there have been three major floods in the 18th Congressional District which resulted in historic water levels in several local dams, and in Tuscarawas County, three communities were forced to evacuate which displaced 7,000 citizens. I witnessed this devastation first-hand when I toured damaged properties in many 18th District counties in the aftermath of these floods and I continued to recognize just how important it is to have government programs in place to assist citizens and communities with recovery and rebuilding efforts.

To that end, I have spent a great deal of time working with my colleagues in the Congress on reforming and strengthening the National Flood Insurance Program (NFIP). This federal program is a very valuable tool in addressing the losses incurred throughout the country due to floods. It assures that businesses and families have access to affordable flood insurance that might otherwise be unavailable on the open market.

Prior to the passage of the National Flood Insurance Act in 1968, insurance companies generally did not offer coverage for flood disasters because of the high risks involved. Today, almost 20,000 communities participate in the national flood insurance program. More than 90 insurance companies sell and service flood policies, and there are approximately $4.4 million policies covering a total of $620 billion.

Last year, Congress spent considerable time and effort on legislation to reauthorize the National Flood Insurance Program with an eye towards maintaining the long-term financial and operational viability of this very important program. For example, it provided states and local communities with an additional $40 million a year for flood mitigation efforts and it allowed for increases in flood insurance premiums on properties that refuse government mitigation offers. In addition to repetitive loss and re-authorization, the legislation also required FEMA and insurance companies to provide better information to flood insurance policyholders to ensure that they are fully aware of the details of their policies.

I was proud of our work on this very important issue but I also recognized that it should not end there. To that end, I have held two hearings this year in the House Financial Services Subcommittee on Housing & Community Opportunity, which I chair, in order to continue Congress' oversight on various aspects of the NFIP. The Housing Subcommittee held an oversight hearing in April that focused on administrative problems facing the NFIP and the steps currently being taken by FEMA and others to resolve them.

This past week I chaired a second oversight hearing on FEMA's program of updating flood maps and how this process affects the flood insurance industry and local communities. Flood maps identify areas at greatest risk of flooding, yet nearly 70 percent of the country's flood maps are more than 10 years old, according to FEMA, and reflect outdated data that could affect the ability to accurately identify current flood hazard areas. As a result, FEMA is in the middle of implementing a $1 billion, 5-year map modernization program to update its flood maps.

Finally, I am planning to hold a field hearing in the 18th Congressional District next month in order for the Subcommittee to hear firsthand from those most directly affected by these natural disasters and to hear more on what should be done to improve government assistance efforts.

When natural disasters strike local communities it is important that everyone comes together to rebuild, and government at all levels must play a part in that. While the 18th Congressional District has been particularly hard-hit by floods in recent months, we have made progress on this issue at the federal level and I remain committed to continuing our work in the 109th Congress.

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