Established in 1968, the National Flood Insurance Program (NFIP) is for homeowners who live in flood-prone areas that are considered too great a risk for private insurers.
The program was able to support itself through premiums and fees until 2005, but in blew Hurricanes Katrina and Rita and the program was flooded with claims and it's now drowning in debt.
$19 *billion* dollars in debt in fact, and the program doesn't bring in enough in premiums to cover all of the risk and claims. Homeowners also pay below market rates for the insurance.
Friday, June 18, 2010
Flood Insurance Program Drowning in Debt
Fox News reports:
