Bill Overview
Title: National Flood Insurance Program Affordability Act
Description: This bill requires the Federal Emergency Management Agency (FEMA) to provide discounts on National Flood Insurance Program coverage to low-income households and other entities. Specifically, the chargeable premium rate for an eligible primary residential dwelling must not exceed 1% of the median income of the area in which the property is located.
Sponsors: Rep. Cartwright, Matt [D-PA-8]
Target Audience
Population: People living in flood-prone areas that require flood insurance
Estimated Size: 34000000
- The National Flood Insurance Program primarily impacts homeowners and renters in flood-prone areas.
- Low-income households will be disproportionately affected as they may find it difficult to afford flood insurance without discounts.
- According to FEMA, approximately 4.9 million homes and businesses have flood insurance policies across the U.S.
- This legislation directly targets low-income households, which the U.S. Census Bureau estimates constitute around 29 million households in 2022.
- Globally, flood insurance is less common, but thousands of communities internationally might relate to its affordability issues.
Reasoning
- The policy is designed to aid low-income households in high-risk flood zones by making flood insurance affordable.
- Since the target population is around 34 million, but the policy budget limits the program's reach, not all affected individuals will receive aid.
- Wellbeing scores rely on multiple factors, not just financial security; thus, variations among impacted peoples' scores arise.
- Some individuals, even within low-income brackets, might not perceive immediate benefits depending on their flood risk perceptions and actual coverage need.
Simulated Interviews
teacher (New Orleans, LA)
Age: 35 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- I've been worrying about the next hurricane season every year.
- I can barely manage my expenses, let alone think about extra insurance costs.
- This policy could really help me sleep better at night.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 8 | 3 |
| Year 20 | 7 | 3 |
restaurant owner (Miami, FL)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- Flood insurance is already a big part of my expenses.
- If insurance became cheaper, I could reinvest more into my business.
- It’s a good initiative, but I’m skeptical of the government implementing it effectively.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
nurse (Houston, TX)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- I think about buying a home, but flood risk makes it daunting.
- This policy eases some worries, but what about post-flood assistance?
- Affordable flood insurance is a step forward.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
retired (New York, NY)
Age: 60 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- Survival on a fixed income means calculating every expense.
- I’ll take any help I can get with flood insurance costs.
- I worry about complicated application processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
bartender (Biloxi, MS)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- It feels like everyone in the south deals with flood risks.
- While I'm not directly, anything that helps the community is good.
- Maybe this could even reduce rental costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
insurance agent (Sacramento, CA)
Age: 50 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- Professionally, I'm curious about increased clientele from this.
- Personally, it doesn’t affect my coverage or finances.
- The policy could expand customer reach.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
civil engineer (Charleston, SC)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- My work and personal life both intertwine with flood risk.
- Lower insurance costs could free up more money for home improvements.
- This feels like a positive step, but I worry about long-term sustainability.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
real estate agent (St. Louis, MO)
Age: 48 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Clients frequently worry about flood insurance costs when buying.
- Cheaper insurance could boost property sales.
- This could potentially smooth out some real estate bottlenecks.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
retail manager (Salt Lake City, UT)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- This policy doesn't really impact me directly.
- I support more affordable insurance in principal.
- Our community isn't really affected by floods, but it’s good for places needing it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
software developer (Seattle, WA)
Age: 30 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 9/20
Statement of Opinion:
- Climate change worries me about future flood risks.
- Having insurance that's more affordable eases some anxieties.
- I hope the government commits to this policy long-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 4 |
Cost Estimates
Year 1: $500000000 (Low: $400000000, High: $600000000)
Year 2: $510000000 (Low: $410000000, High: $610000000)
Year 3: $520000000 (Low: $420000000, High: $620000000)
Year 5: $540000000 (Low: $440000000, High: $640000000)
Year 10: $560000000 (Low: $460000000, High: $660000000)
Year 100: $750000000 (Low: $650000000, High: $850000000)
Key Considerations
- The overall economic implications of climate change could influence policy outcomes significantly.
- The policy aims to balance the need for flood insurance coverage with affordability for low-income populations.
- Distribution of benefits will depend heavily on local income levels and regional flood insurance costs.