Flood insurance and floodplain management: the US experience

Abstract

With over six million buildings located within the boundaries of the 100-yr floodplain, flood losses across the United States are widespread (88% of US counties experienced at least one flood disaster during the second half of the twentieth century). To deal with this problem, the federal government provides flood insurance through the National Flood Insurance Program, which was initiated by Congress in 1968 and amended significantly in 1969, 1973, and 1994. This article describes the US approach to flood insurance and notes a number of problems that have limited its effectiveness. Flood hazard identification is incomplete, and methods used are flawed. Mitigation has failed to contain increasing exposure to property damage in floods and coastal storms, and it has failed to markedly reduce exposure to loss of older buildings located in flood hazard areas. Market penetration of flood insurance is low, in spite of mandatory purchase requirements for new construction and the availability of subsidized insurance rates for older buildings located in flood-hazard areas. These problems, although serious, can be remedied through a variety of actions taken by governments at the federal, state, and local level.