Bill Overview
Title: National Flood Insurance Program Extension Act of 2022
Description: This bill reauthorizes the National Flood Insurance Program through December 31, 2023.
Sponsors: Rep. Hill, J. French [R-AR-2]
Target Audience
Population: people living in flood-prone areas
Estimated Size: 5000000
- The National Flood Insurance Program (NFIP) provides flood insurance to property owners, renters, and businesses.
- Floods are common in several regions of the world, especially in those near large bodies of water or in low-lying areas.
- The population impacted includes individuals living in flood-prone areas who rely on flood insurance to manage flood risk.
- Globally, several countries experience floods regularly, including the U.S., parts of India, Bangladesh, China, and parts of Europe.
Reasoning
- The National Flood Insurance Program (NFIP) impacts primarily those living in flood-prone areas, which includes many along the U.S. coasts and riverbanks. Thus, I'll consider residents from areas like Louisiana, Florida, and some urban regions in New York.
- Not all individuals in these areas have high exposure or rely heavily on NFIP, as some may have private insurance, have already mitigated flood risks, or live in higher areas within floodplains where insurance does not make a big difference.
- The target population of 5 million reflects those directly benefiting from NFIP._estimated extent from NFIP coverage data. Hence, the diversity in interviews must represent varied dependence on flood insurance.
- Given the budget constraints, not all individuals needing insurance could be fully covered, especially in the longer term. Budget allocation will affect insurance rates and coverage limits.
- In these interviews, 'selfReportedWellbeing' serves as a proxy for the psychological and economic stability perceived by each individual based on the ongoing assurance against flood risks.
Simulated Interviews
Restaurant owner (New Orleans, Louisiana)
Age: 52 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 8/20
Statement of Opinion:
- The NFIP is essential for my business. Floods have a real impact here, and without insurance, I could lose everything.
- I am concerned about how comprehensive the coverage will remain with the current budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 4 |
| Year 20 | 7 | 3 |
Software Engineer (Miami, Florida)
Age: 34 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- I have considered NFIP but my area is not severely impacted by floods.
- It's comforting to know NFIP exists, though it's not crucial for my personal plans.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 7 | 8 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Community Organizer (Houston, Texas)
Age: 28 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- NFIP provides necessary security for tenants like us who can't afford heavy losses.
- There is always the worry that budget constraints will lead to increased premiums.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 2 |
Retired Teacher (Sacramento, California)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- I'm worried about flooding more than anything insurance-related due to climate unpredictability.
- The NFIP reassures new retirees like myself, offering peace of mind.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 2 |
Insurance Adjuster (Baton Rouge, Louisiana)
Age: 29 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- NFIP impacts my work, as claims spike with severe weather events.
- Personally, I'm less impacted, but professionally I see its importance.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 4 |
| Year 20 | 6 | 4 |
Retired Firefighter (Queens, New York)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 6/20
Statement of Opinion:
- The possibility of another 'Sandy' keeps me awake at night.
- With NFIP, there's some reassurance for the financially devastating possible scenarios.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 7 | 2 |
Environmental Scientist (Seattle, Washington)
Age: 42 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 4/20
Statement of Opinion:
- I support NFIP as it aligns with reducing risks for communities.
- I understand it's not as urgent for those on higher ground in Seattle.
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 |
Teacher (Naples, Florida)
Age: 37 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- NFIP is a safety net for me and my peers at school.
- It's crucial as flooding can disrupt educational activities severely.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 2 |
Hotel Manager (Biloxi, Mississippi)
Age: 55 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Without NFIP, maintaining business is anxiety-ridden due to potential floods.
- Budget constraints worry me, wondering how long coverage can last.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 6 | 2 |
| Year 20 | 6 | 1 |
Real Estate Agent (West Palm Beach, Florida)
Age: 49 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 11/20
Statement of Opinion:
- I'm aware of the crucial nature of NFIP for property markets.
- Many clients decide based on insurance assurances against floods.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 3 |
Cost Estimates
Year 1: $1200000000 (Low: $1000000000, High: $1500000000)
Year 2: $1250000000 (Low: $1050000000, High: $1600000000)
Year 3: $1300000000 (Low: $1100000000, High: $1650000000)
Year 5: $1350000000 (Low: $1150000000, High: $1700000000)
Year 10: $1450000000 (Low: $1200000000, High: $1800000000)
Year 100: $1750000000 (Low: $1500000000, High: $2100000000)
Key Considerations
- Continuation of NFIP funding is crucial, given the frequency and severity of flood events.
- The potential need for additional government funds if the program's premium collections remain insufficient.
- Political considerations on reauthorizing the program beyond 2023 and exploring possible reforms if deemed necessary.