Reasonable and Risk-Based? Replacing NFIP Generally Subsidized Rates with a Means-Tested Subsidy
The National Flood Insurance Program was created to seek two often conflicting goals: (i) shifting risks from federal taxpayers to those who choose to live in flood plains and (ii) ensuring flood insurance is available to everyone at "reasonable" rates. Efforts to accomplish the second goa...
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| Veröffentlicht in: | Southern economic journal 2019-04, Vol.85 (4), p.1180-1195 |
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| container_title | Southern economic journal |
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| creator | Miller, Benjamin Dixon, Lloyd Clancy, Noreen |
| description | The National Flood Insurance Program was created to seek two often conflicting goals: (i) shifting risks from federal taxpayers to those who choose to live in flood plains and (ii) ensuring flood insurance is available to everyone at "reasonable" rates. Efforts to accomplish the second goal currently take the form of subsidies based on location and the date a home was constructed. The resulting revenue from subsidized insurance premiums is not sufficient to cover the true cost of flood insurance, and federal taxpayers have paid the difference: $30 billion to date. Based on a detailed survey of households in the high-risk flood zones of New York City (NYC), we find that replacing existing premium subsidies with risk-based prices and a subsidy for low-income housing-burdened households could better meet both goals by ensuring low-income individuals have access to affordable flood insurance while still saving the federal taxpayer up to $183 million per year in NYC alone. |
| doi_str_mv | 10.1002/soej.12329 |
| format | Article |
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Based on a detailed survey of households in the high-risk flood zones of New York City (NYC), we find that replacing existing premium subsidies with risk-based prices and a subsidy for low-income housing-burdened households could better meet both goals by ensuring low-income individuals have access to affordable flood insurance while still saving the federal taxpayer up to $183 million per year in NYC alone.</description><identifier>ISSN: 0038-4038</identifier><identifier>EISSN: 2325-8012</identifier><identifier>DOI: 10.1002/soej.12329</identifier><language>eng</language><publisher>Hoboken, USA: Southern Economic Association</publisher><subject>Flood control ; Flood insurance ; G22 ; H11 ; H23 ; Households ; Housing ; Premiums ; Prices ; R28 ; Subsidies ; Symposium: Economics, Insurance, and Flood Hazards</subject><ispartof>Southern economic journal, 2019-04, Vol.85 (4), p.1180-1195</ispartof><rights>2019 by the Southern Economic Association</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c3569-ebb042fd64ad817640e1345356cab3e8e0d12f795dcabe0e49068e16c523fe8b3</citedby><cites>FETCH-LOGICAL-c3569-ebb042fd64ad817640e1345356cab3e8e0d12f795dcabe0e49068e16c523fe8b3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.jstor.org/stable/pdf/26633617$$EPDF$$P50$$Gjstor$$H</linktopdf><linktohtml>$$Uhttps://www.jstor.org/stable/26633617$$EHTML$$P50$$Gjstor$$H</linktohtml><link.rule.ids>314,780,784,803,1417,27924,27925,45574,45575,58017,58250</link.rule.ids></links><search><creatorcontrib>Miller, Benjamin</creatorcontrib><creatorcontrib>Dixon, Lloyd</creatorcontrib><creatorcontrib>Clancy, Noreen</creatorcontrib><title>Reasonable and Risk-Based? 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Based on a detailed survey of households in the high-risk flood zones of New York City (NYC), we find that replacing existing premium subsidies with risk-based prices and a subsidy for low-income housing-burdened households could better meet both goals by ensuring low-income individuals have access to affordable flood insurance while still saving the federal taxpayer up to $183 million per year in NYC alone.</description><subject>Flood control</subject><subject>Flood insurance</subject><subject>G22</subject><subject>H11</subject><subject>H23</subject><subject>Households</subject><subject>Housing</subject><subject>Premiums</subject><subject>Prices</subject><subject>R28</subject><subject>Subsidies</subject><subject>Symposium: Economics, Insurance, and Flood Hazards</subject><issn>0038-4038</issn><issn>2325-8012</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2019</creationdate><recordtype>article</recordtype><recordid>eNp9kM1Lw0AQxRdRsFYv3oUFb0LqfmWTnERLWyvVSlvP6yaZaGJM6m5KiX-9W6MevcxjmN-bGR5Cp5QMKCHs0tZQDCjjLNpDPSe-FxLK9lGPEB56wpVDdGRtQRxMqd9DzwvQtq50XALWVYoXuX3zbrSF9AovYF3qJK9e8MN4-ognUIHRZdni5Sa2eZp_guN1AxZv8-YVa3wPurLeCmzjJh3UHqODTJcWTn60j57Go9Xw1pvNJ9Ph9cxLuC8jD-KYCJalUug0pIEUBCgXvpslOuYQAkkpy4LIT10PBEREZAhUJj7jGYQx76Pzbu_a1B8b94Iq6o2p3EnFGCFBJPxIOOqioxJTW2sgU2uTv2vTKkrULkG1S1B9J-hg2sHbvIT2H1It56O7X89Z5ylsU5s_D5OSc0kD_gX-BnxK</recordid><startdate>20190401</startdate><enddate>20190401</enddate><creator>Miller, Benjamin</creator><creator>Dixon, Lloyd</creator><creator>Clancy, Noreen</creator><general>Southern Economic Association</general><general>John Wiley & Sons, Inc</general><scope>AAYXX</scope><scope>CITATION</scope><scope>4S-</scope><scope>4T-</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20190401</creationdate><title>Reasonable and Risk-Based? 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Replacing NFIP Generally Subsidized Rates with a Means-Tested Subsidy</atitle><jtitle>Southern economic journal</jtitle><date>2019-04-01</date><risdate>2019</risdate><volume>85</volume><issue>4</issue><spage>1180</spage><epage>1195</epage><pages>1180-1195</pages><issn>0038-4038</issn><eissn>2325-8012</eissn><abstract>The National Flood Insurance Program was created to seek two often conflicting goals: (i) shifting risks from federal taxpayers to those who choose to live in flood plains and (ii) ensuring flood insurance is available to everyone at "reasonable" rates. Efforts to accomplish the second goal currently take the form of subsidies based on location and the date a home was constructed. The resulting revenue from subsidized insurance premiums is not sufficient to cover the true cost of flood insurance, and federal taxpayers have paid the difference: $30 billion to date. Based on a detailed survey of households in the high-risk flood zones of New York City (NYC), we find that replacing existing premium subsidies with risk-based prices and a subsidy for low-income housing-burdened households could better meet both goals by ensuring low-income individuals have access to affordable flood insurance while still saving the federal taxpayer up to $183 million per year in NYC alone.</abstract><cop>Hoboken, USA</cop><pub>Southern Economic Association</pub><doi>10.1002/soej.12329</doi><tpages>16</tpages></addata></record> |
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| identifier | ISSN: 0038-4038 |
| ispartof | Southern economic journal, 2019-04, Vol.85 (4), p.1180-1195 |
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| language | eng |
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| source | Wiley Journals; Business Source Complete; JSTOR Archive Collection A-Z Listing |
| subjects | Flood control Flood insurance G22 H11 H23 Households Housing Premiums Prices R28 Subsidies Symposium: Economics, Insurance, and Flood Hazards |
| title | Reasonable and Risk-Based? Replacing NFIP Generally Subsidized Rates with a Means-Tested Subsidy |
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