A Community-Based Flood Insurance Option (2015)Water Science and Technology Board
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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.