Congressional action is needed to address drastic increases to NFIP

Michael Caludet

Published: Wednesday, October 16, 2013

We respectfully disagree with the column submitted by Mr. Steve Ellis of Taxpayers for Common Sense on Oct. 15.

It has become clear that congressional action is needed to address drastic increases to National Flood Insurance Program rates as a result of the Biggert-Waters Act of 2012.

The law as it currently stands will devastate taxpaying home and business owners across coastal and riverine America because they simply will not be able to afford new rates and could be forced into foreclosure.

Biggert-Waters as it currently stands will not put the NFIP on a path to fiscal solvency.

A super storm has occurred with the Biggert-Waters Act, incomplete and inaccurate FEMA maps that artificially inflate risk by not including locally built flood protection features and questionable actuarial calculations that have led to premium increases of 3,000 percent and more.

These unaffordable premium increases are not limited to the wealthy and owners of properties with severe repetitive loss. They also affect policyholders who have built to code and have never flooded.

The people of Terrebonne support a fiscally sound, actuarially responsible NFIP that communicates to citizens their true flood risk.

We do not support perverse incentives for building in harm’s way, nor do we support the continued subsidization of severe repetitive loss properties.

However, we must protect property owners who have played by the rules and built as their government told them.

Our goal is dual: to find an immediate solution to the challenges of Biggert-Waters; and, to develop a long-term solution that works for America.

And we may have some common ground with Mr. Ellis: We agree that the solution is not simply within the NFIP rate structure.

The entire structure of the program puts its solvency at risk.

If Biggert-Waters is implemented as it currently stands, the consequences are clear and devastating.

Owners will lose everything, property values will plummet, bank mortgages will go into default, local tax bases will erode, and economies will be eviscerated.

Ironically, this will ultimately destroy NFIP itself as policyholders will be forced to leave the program in droves.

To implement Biggert-Waters as it currently stands would be economically unwise and morally unjust.

Michel H. Claudet is Terrebonne Parish president.