Why are Private Flood Programs Necessary?
The majority of flood insurance in the Unites States is written by the government. The National Flood Insurance Program (NFIP), established by Congress in 1968, offers flood coverage to homeowners, renters and business owners if the community participates in the program.
The NFIP is set to expire after this current extension run out. Recent legislation raised the NFIP rates to help offset the $24B deficit of the NFIP. The law also mandated the study of expanding private options for flood coverage. As a result, private companies are coming forward to offer alternatives to this government program.