The Pros and Cons of the National Flood Insurance Program

If your home has been devastated by flood waters, you know the importance of flood insurance. If you have had flood damage and haven’t had flood insurance, you really know how challenging it can be to regroup after the flooding is over. Having homeowners insurance is not enough.  A special flood insurance policy is required in order to get help in restoring your home after a flood. The National Flood Insurance Program (NIFP) works with certain communities to provide flood insurance to homeowners, but it is not an automatic benefit.

What Is the National Flood Insurance Program?

This federal program provides flood insurance to homeowners and renters. It is now up for reauthorization. Congress needs to reauthorize the NFIP before midnight of November 30^th, this year. In the past, it has always been renewed. The program has had its problems with funding. It is in arrears, due to the heavy payouts, with the number of severe storms that have plagued the country in the last few years.

Advantages of the National Flood Insurance Program

People living in communities where flood insurance is required can get flood insurance which is backed by the National Flood Insurance Program. This is good in the event of a flood. It only takes a little bit of flood water to cause a large amount of damage. In fact, just five inches can cause over $10,000 in damage to a home.

Disadvantages of the Program

The National Flood Insurance Program is experiencing problems because of the flooding in the past few years. The program had to pay out more money than it was able to take in. This is one reason why it is difficult to get private flood insurance. There are not enough people buying flood insurance to offset the payouts when there is a catastrophe.

Despite the program’s problems, it still provides assistance for some families that would otherwise not have the ability to recover from flood damage. It remains to be seen whether or not the program can recover sufficiently to help with future flood damage.

Damage from floodwaters can be devastating. Damage to persons or property from an accident can be devastating, also. At Frohlich, Gordon, & Beason, P.A. we practice personal injury law providing our clients with excellent legal services to help them get fairly compensated. If you or a loved one has a personal injury case, give us a call or stop by one of our offices to schedule a complimentary consultation. We have offices in Englewood, North Port, and Port Charlotte to serve the southwest Florida area.