A new study
concerning flood insurance policy, with any changes disproportionately affecting
Louisiana, creeps closer to more appropriate pricing but still falls short of
the optimal option.
The Federal Emergency Management Administration,
using Census data, compared income data and current pricing to investigate whether
to revise rates on affordability criteria. The National Flood Insurance Program
chronically has run in the red, prompting changes over the past several years
but remains in flux as Congress can’t decide how to alter matters to put it in
balance.
The report noted nationally that policyholders
earned about half again what non-policyholders made. This suggests an affordability
issue, confirmed in that in flood-prone areas twice as many low-income
households don’t have insurance than do, with a smaller gap in other areas,
while the ratio roughly is reversed for those of higher incomes.