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December 2017   Volume 43, Number 12      
 

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National Flood Insurance Program Might Not Be Able to Fulfill Obligations to Homeowners

The Congressional Budget Office, a nonpartisan analysis for the U.S. Congress, crunched the numbers on the National Flood Insurance Program again, calculating the average cost to families.

According to the first CBO report, the program has an expected one year shortfall of $1.4 billion. The new report took it a step further and included the median premium for a policy on a primary single-family home.

The program is designed to help lessen the impact of flooding on private and public structures. “It does so by providing affordable insurance to property owners and by encouraging communities to adopt and enforce floodplain management regulations,” FEMA’s website states.

For most policies included in the analysis, the CBO found the actual premium was between 0.45 percent and 1.70 percent of the median household income for single-family households within the same census tract. The median remained at 0.75 percent. Broken up further, approximately 8 percent of the premiums were less than 0.35 percent of the relevant median household income, 14 percent of premiums were above 2 percent of that income, and 6 percent of premiums were above 3 percent of that income.

The updated numbers on premium costs to homeowners demonstrate that the NFIP might not even be able to fulfill its financial obligations to flood victims given that the NFIP is already drained from the growing costs of Hurricane Harvey, Irma, and Maria.

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In this issue:

Homebuyers Rush to Riskier Mortgages As Home Prices Rise

Amazon Ventures Into Real Estate With Hire a Realtor Service

Digital Real Estate Platform Home61 Raises $4 Million

Homebuyers Can Now Crowdfund Their Mortgage Down Payments

Millennials Going Over Budget to Buy Homes

National Flood Insurance Program Might Not Be Able to Fulfill Obligations to Homeowners

San Francisco Most Over-valued Market in U.S.

Trump Tax Reform Sparks Fears for California Realtors

Weekly Mortgage Applications Stall Along With Rates and Home Sales

10 Reasons to Schedule a Seller Counseling Session



 


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