Expert Report

A Community-Based Flood Insurance Option (2015)

Topics: Water Hydrology

Each report is produced by a committee of experts selected by the Academy to address a particular statement of task and is subject to a rigorous, independent peer review; while the reports represent views of the committee, they also are endorsed by the Academy. Learn more on our expert consensus reports.

Part of the conversation regarding National Flood Insurance Program reform is the prospect of a community-based flood insurance option--a single insurance policy for an entire community--which may be more effective and less expensive than administering separate policies for each property within a given community. This report identifies key issues and questions as "food for thought" for FEMA and Congress as they weigh both the possible benefits and challenges of a community-based flood insurance option.

A community-based flood insurance option may create new opportunities to reduce flood losses, but is unlikely to provide the single solution to the nation's pressing flood insurance problems. Either as a stand-alone policy option or as part of a suite of policies, a community-based flood insurance option will need to address specific challenges like increasing policy takeup rates, reducing administrative costs, and enhancing floodplain management.

Watch a recorded webinar about this report here.

View a slideshow about the findings of this report here.