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Letter: Easy Fix for Flood Insurance Program

To the Editor:

There is an easy fix for the National Flood Insurance Program. There simply is no political will to implement it. Here it is:

∎  Stop issuing policies for new construction and development.

∎  Stop writing new policies for existing properties that do not have flood insurance.

∎  When a property is destroyed by flooding, and a claim is paid, cancel the policy.

∎  When a property is damaged to a lesser degree, and a claim is paid, reduce the amount of coverage by the amount paid.

∎  Cap the amount of coverage provided under existing policies, and renewals thereof, at present levels.

∎  Phase out the amount of coverage provided under existing policies and renewals by straight-line amortization over 30 years. And phase in free-market premiums at the same rate.

With all this being done, we are left to deal only with the problem of stranded costs, which is all there ever was to the problem in the first place. That is done as follows: When a property covered by flood insurance changes hands, only insure it to the following extent a) up to the amount of seller’s coverage at time of sale in accordance with last bullet point above; and b) for insurable amounts requested in excess of seller’s coverage, at market rates in accordance with standing limitations, with all coverage being phased out over 30 years.

Could it be simpler ?

Tyler P. Harwell

New London