Jim Beam Column: Flood Insurance Too Expensive

U.S. House Majority Leader Steve Scalise of Louisiana told a Baton Rouge columnist that Congress has done a number of good things that people know little about and some that have helped Louisiana. However, he didn't mention Congress' failure to reform the National Flood Insurance Program.

Louisiana would be a major benefactor of that reform because its coastal areas are susceptible to flooding. Many other areas of this country are also experiencing major flooding problems for the first time because of climate change.

Scalise bragged about doing away with some state and federal laws and regulations that deal with climate change because many Republicans refuse to admit that climate change is real. However, nothing else explains why every part of the country is now experiencing major weather events like flooding caused by heavy rainfall, tornadoes, severe winds and mudslides.

Many home and business owners across the country can't afford flood insurance coverage and they are going to have a difficult time recovering from the severe weather events.

The Associated Press reported that the typical cost of a flood insurance policy is $1,100 per year, up roughly 90% in the last five years. Dan Charlson of Lake Charles told The AP that his flood insurance shot up over time from roughly $900 to $4,000. That's when he dropped his policy.

"I'm looking at what it costs to fix the house, and the fact that I only flooded once in 50 years. So, it's a risk analysis," Charlson said.

My premium isn't as high as Charlson's. But I live in a flood-free zone and only paid $400 per year for flood insurance for a number of years. A new flood insurance program has caused costs to skyrocket. My annual premium is now $1,324.

Louisiana Sen. Bill Cassidy, a Republican and a flood insurance reform champion, told The AP that the rating system implemented by the Joe Biden administration and defended by the Trump White House has put flood insurance out of reach for too many.

"Recent administrations pushed Risk 2.0 forward without fixing the affordability problems created for Louisiana families," Cassidy said.

A May report said, "Congress has instructed the NFIP to be affordable, financially sound, available to all, and risk-informed. These goals often pull in opposite directions, and political pressures have frequently blocked meaningful reform, leading to dozens of short-term program reauthorizations," the report said.

An AP analysis found that nationwide, just 2.4% of properties are covered by 4.5 million federal flood insurance policies, but 8.4% are at severe or extreme risk of flooding.

Price increases are a big reason why the count of policies is down roughly 500,000 in five years. The AP said this downward trend collides with the rising risk of flooding across many areas of the United States, driven by climate change that can strengthen hurricanes and worsen downpours far from the coast.

Louisiana coastal areas are at high risk of flooding and few people are insured. They tend to be poorer, experts say, as are areas where Federal Emergency Management Agency's flood maps don't properly convey the severity of the risk or mandate that enough people buy coverage.

The proposals to overhaul the program have stalled, including adding options to make it more affordable to low-income buyers.

The faculty director of the National Center for Disaster Preparedness at Columbia University said, "Everybody agrees it's broken, but no one can agree how to fix it."

One Kentucky family experienced flooding, but they had flood insurance, which paid what was left on their mortgage. That helped them start again, debt free. They found a place nearby, which was closer to the kids' school and their work.

Another Kentucky family experienced floods that left six inches of "gooey, clay mud" in their house that was so thick it could suck shoes off feet and had to be shoveled out. Without insurance, they mostly lived in a small place FEMA provided and relied on generous church groups and donations. With insurance, the father said he is confident the work would have been done much faster.

Now that many Americans have experienced severe weather problems because of climate change, they would be more likely to buy flood insurance if it wasn't so expensive. Congress needs to finally do something about this national emergency that causes too many Americans without flood insurance to suffer serious weather losses.

Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at jim.beam.press@gmail.com.

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