Accession Number:

ADA402862

Title:

FLOOD INSURANCE: Extent of Noncompliance with Purchase Requirements Is Unknown

Descriptive Note:

Congressional rept.

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC

Personal Author(s):

Report Date:

2002-06-01

Pagination or Media Count:

49.0

Abstract:

Floods have inflicted more economic losses upon the United States than any other natural disaster. Since its inception 34 years ago, the National Flood Insurance Program NFIP has combined flood hazard mitigation efforts and insurance to protect homeowners against losses from floods. The program, which is administered by the Federal Emergency Management Agency FEMA, provides an incentive for communities to adopt floodplain management ordinances to mitigate the effects of flooding upon new or existing structures. It offers property owners in participating communities a mechanism-federal flood insurance-to cover flood losses without increasing the burden on the federal government to provide disaster relief payments. Since 1973, flood insurance has been required for properties located in flood-prone areas participating communities for the life of mortgage loans made or held federally regulated lending institutions or guaranteed by federal agencies. In 1990, it was reported that differing viewpoints had emerged about whether all homeowners required to obtain flood insurance actually had it. This report examines lender compliance with the mandatory insurance purchase requirement. This report addresses 1What are the bases for the differing perspectives on lender noncompliance 2 What does other readily available data indicate about the extent of noncompliance 3 What data would be needed to fully measure noncompliance

Subject Categories:

  • Economics and Cost Analysis

Distribution Statement:

APPROVED FOR PUBLIC RELEASE