EDITORIAL: Require flood insurance

Sept. 03--Every major flood produces a flood of requests for federal help, and a flood of regret among property owners who had declined to buy flood insurance.

The tragedy that Hurricane Harvey visited upon the Houston area last week is about to be compounded by the realization among many property owners that federal assistance rarely comes close to covering their total losses.

According to federal data, in the eight counties most affected by Harvey's unprecedented deluge, only 17 percent of property owners have flood insurance. Harris County, which includes Houston, has 25,000 fewer flood-insured properties than it had in 2012, an 8 percent decrease.

Federal assistance will help in many cases, but those grants are capped by law at $33,000, whereas residential federal flood insurance policies cover up to $250,000 in property damage and another $100,000 for possessions. And in some cases, federal assistance is a loan that must be repaid rather than a grant.

Like other insurance, flood insurance pricing depends on the insured property's location and known risk. In the Houston area the average policy's annual premium is $500 but the cost can range as high as $2,000.

Even though flooding is the most common natural disaster, most jurisdictions do not require flood insurance for properties in mapped flood zones. Banks require flood insurance for property under mortgage, but governments pass on recovery costs to taxpayers rather than requiring insurance.

That should change. Congress likely will quickly address Harvey-related disaster relief. It also is scheduled to renew the National Flood Insurance Program. It should require states to mandate flood insurance for properties in mapped flood zones for the states to be eligible for federal infrastructure funding. And it should establish a subsidy program to help low-income property owners pay for it.

Flood-prone Pennsylvania need not wait. It should require flood insurance for properties in mapped flood zones. Owners could provide proof of coverage with their local or state tax returns, much as they provide proof of insurance when registering their vehicles.

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