EDITORIAL: Stability needed for flood insurance

March 24-- Mar. 24--The National Flood Insurance Program is in need of long-term reform and renewal, a need that has existed and been largely ignored for years by Congress and a succession of presidents.

This year, though, there could be some momentum growing for a solution to this persistent problem, one that affects coastal Louisiana along with all other areas of the country that are low-lying or close to the water.

Instead of moving from one temporary extension to the next, the federal flood insurance program -- the only way people can purchase flood insurance on their property -- needs an extension that allows home and business owners the peace of mind they deserve. In addition, if reforms are put in place as part of the extension, they could remove some of the cloud of doubt hanging over all real estate in flood-prone areas.

Until now, there has been no guarantee that the next person who buys your house will be able to have flood insurance. Since the program has been extended repeatedly, most of the time for just six months each time, it could have simply expired. Homes that are required by banks and mortgage companies to be covered by flood insurance would not be able to be sold.

That would create widespread chaos in the real estate markets here and elsewhere. So, reforms, as long as they are done keeping the interests of homeowners in mind, could be a welcome improvement.

"The devil's in the details," Michael Hecht, president and chief executive officer of GNO Inc., said Tuesday. "On the one hand, more accurate mapping is a good thing and one we have been advocating for years. On the other hand, it's critical that we understand how the risk is going to be calculated and how affordability is going to be preserved."

For people here to be able to continue using the program, it will have to be affordable. That means that rate increases will have to moderate. Past efforts at changing the program have resulted in huge increases in premiums, rendering homeowners unable to pay for coverage.

The National Flood Insurance Program is the only thing many of us have to protect our largest investments from loss due to flooding. This is an important issue and one that deserves a long-term solution. Let's hope the political will finally exists to bring about this much-needed change.

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

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