Panel criticizes FEMA's handling of flood insurance program
The Federal Emergency Management Agency's handling of the National Flood Insurance Program drew sharp criticism Tuesday from Senate Banking Committee members, who said FEMA has yet to implement provisions of a program overhaul enacted nearly 16 months ago.
"Regrettably, I have had experience dealing with FEMA and the National Flood Insurance Program over the past two years, and given these interactions, I am very deeply concerned about FEMA's ability to handle not only flood insurance claims, but the other needs of the people affected by Hurricanes Katrina and Rita," Banking ranking member Paul Sarbanes, D-Md., said during a hearing.
David Maurstad, FEMA's acting Mitigation Division director and federal insurance administrator, said NFIP claims resulting from Hurricanes Katrina and Rita could exceed $22 billion, which would surpass the total amount of NFIP claims paid out since the program was created 37 years ago.
"We not only have a legal obligation to honor our commitments, but we have a moral obligation to provide the coverage we've promised to provide," Maurstad said.
But Sarbanes said many Maryland residents are still reeling from the effects of Hurricane Isabel -- which struck in 2003 -- and some have sued FEMA over their flood insurance settlements. "FEMA was clearly overwhelmed then, let alone now," Sarbanes said.
Sarbanes and Banking Economic Policy Subcommittee Chairman Jim Bunning, R-Ky., said FEMA has not implemented several provisions enacted as part of last year's NFIP reauthorization in response to problems that emerged after Isabel. One of those provisions required FEMA to establish, by Dec. 30, 2004, a process for flood insurance policyholders to appeal claims decisions.
Maurstad said FEMA is working "diligently" to implement a formal appeals process, but did not specify when it would be finished.
COMMENTS
- Taxpayer, I think we have to realize where our Navy is and why they have to be there. And, how about the seafood industry? Isn't that enjoyed all over? I agree that the federal government doesn't need to be in the insurance business, and how well do I know. But, there is also inland flooding. Ever been in flash flooding on the inlands? How about dams breaking and mountains with mud slides? And then we also have tornado alley far from the coast. There are just so many things to consider. Life is at risk no matter where you go. GovExec.com reader Posted October 20, 2005 9:39 PM
- Taxpayer - you sound like many folks who only think of those needing flood insurance as those folks living near the ocean. However, it can apply to anyone through the country. All you need is a terrific amount of rain. I am not in a flood area. However, every time we get large amounts of rain my street floods. Luckily, my house sits high enough off the street level that it does not impact me. But, flood insurance is not for folks living in hurricane prone areas only. The sad fact is that insurance companies, however, will not deal with flood insurance. GovExec.com reader Posted October 21, 2005 12:25 PM
- The federal government should not be in the insurance business. If insurance companies will not insure homes in flood prone areas, perhaps it is in everyone's (especially the taxpayer’s) best interest for people not to live there, except at their own risk! Taxpayer Posted October 20, 2005 8:00 AM
