Number of NFIP-covered homes with severe, repetitive losses growing

Author: Steve Hallo 

Original article here.

 

Less than 1% of homes across the National Flood Insurance Program’s book of business see severe and repetitive flooding but these properties account for more than 10% of NFIP claims, according to a data tool created by the Natural Resources Defense Council (NRDC).

While less than 1% of NFIP policies cover homes currently categorized as severe repetitive loss properties (SRLPs), the number is growing. The NRDC reported the number of homes meeting the criteria increased nearly 20% since 2020.

According to the NRDC, properties are considered SRLPs under the NFIP if they meet one of the following definitions:

  • Definition A: Four or more separate claim payments of more than $5,000 each. This includes claims for both the building and its contents.
  • Definition B: Two or more separate claims payments, for the building only, where the total of those payments exceeds the value of the property.

The NRDC reported that there are around 32,150 properties in the U.S. that meet definition A, while 18,829 SRLPs meet definition B.

 “The bottom line is that the flooding risks to communities are increasing faster than officials are dealing with them,” Anna Weber, a senior policy analyst at NRDC, said in a release. “Homeowners desperately need new measures that can help them afford flood insurance, reduce the risk of flooding and give those who want it a real opportunity to move to safer ground.”

Around 20% of SRLPs are outside of Federal Emergency Management Agency designated flood zones, according to the NRDC’s Losing Ground data dashboard. Texas and Tennessee stand out as two states that are seeing more repeatedly flooded properties in areas that FEMA maps indicate are at lower risk of flooding.

Slightly more than three-quarters of SRLPs haven’t received any assistance to mitigate the flood risks and many owners of these homes have dropped flood coverage altogether, the NRDC reported.

States that routinely face hurricanes have seen the biggest increase in flood-prone properties with Florida, Texas and Louisiana seeing the biggest increases. The NRDC reported that properties in Texas and Louisiana accounted for nearly half of the total SRLPs payouts.

“The dramatic increase in the number of households facing costly and frustrating flood damage should be a wake-up call for lawmakers, FEMA and state and local officials,” Weber said.

 
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