Say New Maps Could Cut Flood Insurance Costs
Washington–The Homeowners could potentially see reductions in their flood insurance premiums if the outdated U.S. maps used to determine flood risks are updated, a witness told a House subcommittee today.
In the United Kingdom as a result of old flood maps being revised it is estimated more than 500,000 properties now qualify for insurance, or will benefit from reduced premiums, said Michael Bullock, president of Intermap Federal Services Inc.
Mr. Bullock, in remarks to the House Financial Services Subcommittee on Housing and Community Opportunity, said in 2000 when the U.K. was facing a problem with old flood data, Intermap, based in Englewood, Colo., was able to create a digital map of England, Scotland and Wales within 18 months to help establish new flood data.
As a result, he said, the country's main flood insurer, Norwich Union, estimated that "as many as 600,000 properties could now qualify for insurance, or would benefit from reduced premiums, as a result of the improved accuracy and resolution of the new flood modeling."
Flood maps are used to determine which areas run the greatest risk of flooding and are used by the Federal Emergency Management Agency to establish building standards and set rates for the National Flood Insurance Program.
According to witnesses at the committee hearing, almost 70 percent of FEMA's flood maps are over ten years old and could contain outdated information causing some homeowners to be required to carry flood coverage they don't need, while others live in harm's way unaware that they are at risk.
Despite Mr. Bullock's testimony about the U.K. experience, FEMA's representative at the proceedings, Acting Director of the Mitigation Division David Maurstad, avoided any promises that new maps would lead to lower premiums for homeowners.
FEMA, he said, is "certainly mindful that we need to make the insurance as affordable as possible." He added that the agency is "hopeful" that the enhanced data will make the risks of flooding more clear and that, with a better knowledge of their risk, homeowners themselves would "start to treat their flood insurance like their fire insurance" and other types of coverage.
Mr. Maurstad's comments were in response to a question from Rep. Randy Neugebauer, R-Texas, who noted that "whether you live on the coast or inland, the costs of insurance are just astronomical."
FEMA is currently in the process of trying to update and digitize those maps with a five-year, $1 billion program. However, one witness before the panel said the eventual costs of the project could run as high as three times that amount.
As Congress signaled its support for the map modernization program in its early stages, FEMA "correctly requested that states develop 'business plans' that identified the costs of map modernization in each state based on a needs assessment approach," said James Williams in testimony for the Association of State Floodplain Managers (ASFPM).
Mr. Williams said a review of these "business plans" by the ASFPM showed that "the state-projected cost of updating flood maps was typically two to three times the funding allocated to the state" outlined in guidance for the map modernization project. As a result, the ASFPM "believes that map modernization is a $2-to-$3 billion project."
Meanwhile, in a related action today, the House approved legislation proposed by Rep. Richard Baker, R-La., that would bar funds provided to homeowners for flood mitigation activities from being considered as income or as a homeowner's resource in determining eligibility for any assistance program.
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