EDITORIAL: Flood insurance needs a long-term solution

Oct. 19--What Louisianans -- and millions of other Americans who live near the water -- need is a long-term solution to the problems plaguing the National Flood Insurance Program.

U.S. Rep. Steve Scalise, R-Jefferson, touched on the topic during an interview with this paper on Tuesday.

"We're going to have to come together and find a way to renew the program on a long-term basis. We need certainty. I'd like to see a five-year authorization of the flood insurance program, and I'm working with a lot of other members to try to make that happen," Scalise said. "There are going to be reforms to the program because there are a lot of people who want to see it end, but in the meantime it really does hurt people, especially first-time home buyers."

There are several different problems that affect the flood insurance program and the many people whose investments it helps protect.

First, and what should be most important, the program is facing mounting debt caused by storm damage it has had to cover. This year's storms will end up costing the program even more and exacerbating its fiscal difficulties.

Second, the program faces a political challenge. Although people throughout the nation are affected by the threat of flooding, not all politicians recognize the importance of subsidizing this important program and helping people avoid financial ruin in the case of a flood.

Third, it is the victim of long-term inaction by Congress and a succession of presidents who have simply put off any attempt at solving the problems at its core, opting instead to pass short-term extensions and delay the inevitable cooperation and compromise that a solution will require.

Facing yet another expiration of the program in September, Congress extended the program through the end of the year. But people who live along the coast, our many rivers and lakes and other flood-prone regions cannot afford to protect their homes and businesses a few months at a time. And they certainly cannot afford the economic chaos that allowing the program to expire would surely cause.

The rate of coverage by flood insurance is far less than it should be. Even though banks and mortgage companies require the coverage for loans on homes and businesses in flood zones, the compliance rate is miniscule. Forcing these people and businesses to participate in the program would drive up the revenue it receives and lessen its financial burden.

The federal government offers a generous payment to insurance companies that sign up customers for flood insurance -- even though those companies carry none of the risk associated with the policy. Adjusting this rate of compensation, over millions of policies, could also be a welcome windfall for the program without affecting people's ability to purchase insurance.

This is not a partisan issue. But it is an issue that affects many of us in south Louisiana.

Let us hope that Scalise can convince his colleagues in Washington, D.C., to support an approach that will bring long-term relief to people and businesses that need and deserve it.

Editorials represent the opinion of the newspaper, not of any individual.

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