House Financial Services Subcommittee on Housing Chairman Davidson Delivers Remarks at Hearing on Encouraging Greater Flood Insurance Coverage in America

WASHINGTON, March 11 -- Rep. Warren Davidson, R-Ohio, chairman of the House Financial Services Subcommittee on Housing and Insurance, issued the following news release:

he House Financial Services Subcommittee on Housing and Insurance, led by Chairman Warren Davidson (OH-08), is holding a hearing entitled, "How Do We Encourage Greater Flood Insurance Coverage in America?"

Watch Chairman Davidson's opening remarks here (https://youtu.be/ewiv1Mssc-Q).

Read Chairman Davidson's opening remarks as prepared for delivery:

"Welcome to the first hearing for the Housing and Insurance Subcommittee for the 118th Congress. I am confident that this will be a productive subcommittee and I look forward to working with the Ranking Member and my colleagues to tackle issues that are affecting Americans across the country.

"Before we begin, I know the Ranking Member, Representative Cleaver could not be with us today as he is currently recovering from a recent surgery. I wish him a safe and speedy recovery and I look forward to his return.

"Thank you to Congresswoman Garcia for filling in his spot today.

"Today's hearing, entitled 'How Do We Encourage Greater Flood Insurance Coverage In America?' will look to highlight one of the most widespread and devastating issues across our country.

"Flooding has been, and will continue to be, one of the most dangerous vulnerabilities facing millions of Americans and their homes. The National Flood Insurance Program currently covers 4.7 million policyholders worth over $1.3 trillion dollars.

"Despite this, the program does not capture the entirety of flood risk facing Americans that live outside of Special Flood Hazard Areas, which is what brings us here today.

"Statistics show that 20 percent of all flood claims take place in areas deemed low- to moderate-risk.

"It's imperative that we explore ways to entice greater coverage in flood-prone areas outside of the government-created flood maps, particularly by expanding the private market where the industry has the ability to underwrite and insure against the flood risk.

"Despite recent growth in the private flood insurance, which now covers about 7% of the entire flood insurance market, regulatory hurdles are one factor impairing the private market's ability to reach its full capacity.

"Today's hearing will look to examine where those regulatory hurdles may exist, at least at the federal level.

"Additionally, we will also explore the barriers that currently exist where consumers fail to appreciate their susceptibility to flood risk with the information that they are given.

"A critical step in strengthening our overall preparedness against devastating floods is raising awareness.

"If we explore ways to address both of these issues-barriers to growing the private market; and consumer accessibility to accurate information and awareness along with the ability to correct the record--we will make great strides to alleviate pressure on the federal government and taxpayer dollars in the event of flooding to these areas.

"Our witnesses today will provide valuable and wholistic insight for us, as policymakers, to improve on the current system and allow for enhanced protection against floods.

"Their testimony, collectively taken with future testimony regarding the National Flood Insurance Program, will hopefully provide us with a basis to pursue legislation that leaves us better off than the status quo when it comes to protecting against flood disasters.

"I thank our witnesses for their testimony today and look forward to the conversation."

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Original text here: https://financialservices.house.gov/news/documentsingle.aspx?DocumentID=408650