Drawbacks to The U.S National Flood Insurance Program
“What are some of the drawbacks to the U.S National Flood Insurance Program?”
While the U.S National Flood Insurance Program has its merits, it has its drawbacks as well. Since it makes properties in flood-prone areas require flood insurance, it increases the odds that these places will be owned by elderly citizens who paid off their mortgage or investors using the property for rental income. Since this flood insurance only covers losses for the owner of the property, it makes it more likely that these properties will be occupied by renters and not property owners. This makes, flood-zone properties more likely to be offered for rent since owners don’t want to get their own items damaged. Finally, the increased risk makes these flood-prone properties cheaper, and since the safer properties become more expensive lower-income communities are more likely to be pushed out to the flood-prone areas, increasing systematic oppression and segregation. These are the Drawbacks to The U.S National Flood Insurance Program.