EDITORIAL: Region must prepare now for higher flood-insurance rates
According to the chairman of
Indicating that change is in the air, a
"This is a big game-changer,"
Rather than focusing on how high the sea level will be in 2060 or 2100, more concern should be on the economics, Pathman told The Post Editorial Board. "Because those things are already changing."
The move to so-called "risk-based assessments" will likely jack up the cost of flood insurance to as much as wind-storm insurance "or more" in the next five to 10 years, said Pathman, a
In high-risk areas -- and much of
Put it together, and investors could start bailing on
As harsh as the consequences will be for our region, there are sound reasons to reform the federal program, which was created 50 years ago to help people affordably repair their homes after flooding. It is now
The program's finances have been battered as floods have become frequent, damage more extensive, and about 20 percent of the 5 million policyholders pay artificially low premiums that don't reflect the true likelihood of flood damage.
At present, the NFIP ties its rate-setting to floodplain maps drawn up by
The most logical reforms would match premiums more realistically to each property's flood risk. This would require better maps and more precise assessments. Any reform must also include financial help to ease the sticker shock for lower-income homeowners.
No place will be more susceptible to higher flood-insurance rates than
It sounds grim. But there are things we can do to minimize the economic threat.
Pathman urges us to think back to 1992's Hurricane Andrew. That disaster could have been catastrophic for insurance rates. But it wasn't. Why? Because
By the same token, if we can demonstrate that we are reducing the risk of property loss from increased flooding, insurers will restrain insurance rates and investors will keep believing in
To do that, Pathman is advocating that
Ideas include a high-resolution map of the city to help developers and homeowners evaluate and adapt to sea-level risk; zoning code modifications; a revised stormwater master plan that factors in rising seas; guidelines and incentives encouraging designers to build more resilient structures; economic and catastrophe modeling; a strategy for where seawalls could be effectively used as barriers.
But
This sounds like a smart policy for all
We've done it with hurricanes. We can do it with rising water.
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