The National Flood Insurance Program Essay

1526 Words Nov 5th, 2016 7 Pages

The NFIP is the National Flood Insurance Program which controls and funds most flood policies in the United States. The Federal Emergency Management Agency, also referred to as FEMA, runs the program and sets the rules. Whether you have a private policy, also known as write your own (WYO), government policy, written through NFIP, or no policy, FEMA and NFIP control in the event of a flood. "National Flood Insurance Write Your Own ..." N.p., 1 Dec. 199. Web. 5 Nov. 2016. The long understood rationale for insurance is to make a person whole again in the event of a catastrophe. On the contrary, many homeowners are left with underpaid claims, denied claims or delayed claims while still paying mortgages on homes that are not inhabitable. The reason is that it’s a business and it’s a profitable business at that. From 1978 to 2013, the NFIP took in 13 percent more dollars than it did pay out claims. "Examining the National Flood Insurance Program’s Claim Process in The Aftermath of Hurricane Sandy." P. 11. United States Government Publishing Office, 2015. Web. 27 Sept. 2016. So why are homeowners struggling with getting reimbursement? What has been found through research is that complex policies along with behaviors that keep reimbursements of claims down in order to keep the big businesses with their heads above water. But one would think that the government would want to protect homeowners, right? Maybe not. It appears to be a mechanism instituted to avoid…

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