House Extends National Flood Insurance, But We Need Long-Term Fix

The House late Tuesday passed a bill that would extend the National Flood Insurance Program (NFIP) until Sept. 30. The program is set to expire at the end of May. Congress has approved 10 short-term extensions of the program since its last multiyear authorization expired in 2017.

“We cannot keep extending the National Flood Insurance Program in a piecemeal fashion.  Short-term extensions one after another are bad policy for the environment, and worse for the homeowners. There’s a flood of problems with the national flood insurance program that we are not addressing. We need to work toward changing the NFIP and not just keep kicking the can down the road. We need to overhaul the entire system and make reforms that help protect the environment and homeowners in a way that’s smarter and more appropriate to the risk involved,” said Jeff Tittel, director of the New Jersey Sierra Club.

The National Flood Insurance Program is a critical source of flood coverage for many homeowners. The program has been widely criticized for encouraging building and rebuilding in flood-prone areas. An increase in devastating storms in recent years has also put the program deeply in debt.

 “The current flood insurance program does not incorporate current and future risks to homeowners. The failure to update the program with effects of rising sea levels and more intense and frequent storms means homes continue to be built and rebuilt in flood-prone areas. The NFIP is broke and broken and we’re not trying to fix it. We’re just moving from crisis to crisis. We have been subsidizing building in flood-prone areas for decades. That has to stop. People inland shouldn’t have to pay for building giant starter castles with elevators down the Shore,” said Tittel. “In New Jersey the failure to address flooding is having a major impact on our state and it’s going to get worse. We are 17 percent more likely to have a storm similar to Hurricane Sandy. Zillow estimates that 63,000 homes in New Jersey are in chronic flooding areas. The definition of insanity is doing the same thing over and over again.”

The House earlier passed a broader disaster relief package that included an extension of the NFIP. The Senate is closing in on a deal regarding disaster relief, but it is unclear whether the NFIP extension will be a part of that agreement.

“Reforming the insurance program is critical because New Jersey faces more serious problems from climate change and flooding than other states. New Jersey’s policies are making things worse. We are the only state on the East Coast that does not have a climate adaptation plan. We are not using up-to-date science on mapping for sea-level rise to the right heights, or for building to the right elevations. FEMA has warned us we will jeopardize flood insurance here if we do not increase house elevations by adding 2 feet of freeboard. That difference means much higher insurance rates here. FEMA has also been critical of our stormwater runoff management plans that will increase flooding,” said Tittel.

 Climate impacts are already being felt in New Jersey. A Rutgers study anticipates a sea-level rise of at least 1 foot in NJ by 2050. We are 17 times more likely to have another storm similar to Hurricane Sandy. Some flood-prone areas are chronically underwater. Many of Gov. Christie’s rollbacks have remained in place under Gov. Murphy.

 “What makes flooding more prevalent and increases insurance rates in New Jersey is the failure to reverse Christie’s rollbacks. We need to reopen the Office of Climate Change and the Office of Climate Adaptation and Mitigation. CAFRA rules still allow for high-density development in coastal and flood-prone areas. Flood Hazard, Water Quality Management and Wetlands rules have all been weakened, removing key protections for waterways and causing increased flooding. We also need better mapping on sea-level rise to make sure we’re building and rebuilding in the right places,” said Tittel.

Congressional leaders supporting the short-term extension said they will also continue working toward a long-term reauthorization. Among the reforms discussed are to make NFIP more affordable, use improved mapping and mitigation, and expanding flood insurance options for consumers.

“New Jersey’s congressional leaders need to step up and push for long-term reform of the flood insurance program.  Insurance rates should be based on risk, and homes should not be allowed to be repeatedly rebuilt in the same places. There used to be a three-strikes-and-you’re-out policy that’s no longer in place. We need a system that’s more fair, in which people pay appropriate to risk. People in Paterson shouldn’t have to pay for beachfront homes at Bayhead and Long Beach Island,” said Jeff Tittel, director of the New Jersey Sierra Club. “We need a flood insurance program that addresses the effects of climate change and sea level rise, and establishes rates appropriate to risk. Otherwise these homes and all of that money will be washed out to sea.”