SPEAK OUT: New flood insurance rates will devastate taxpayers
The Scituate Coastal Coalition and Marshfield Citizens Coastal Coalition respectfully disagree with the commentary Steve Ellis of Taxpayers for Common Sense (“Resist the urge to roll back flood insurance reforms,” Oct. 10).
It has become clear that Congressional action is needed to address drastic increases to the 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 confluence of 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 have led to premium increases of up to 3,000 percent and more for policyholders who have built to code and never flooded. These unaffordable premium increases are not limited to properties with severe repetitive loss and the wealthy – primary residences that have never flooded are being negatively impacted.
The Coalitions 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 twofold: to find an immediate solution to the challenges of Biggert-Waters and to develop a long-term solution that works for America. 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.
David Ball is chair of the Scituate Coastal Coalition and Joe Rossi is chair of the Marshfield Citizens Coastal Coalition.
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