Washington, D.C. – U.S. Representative Ed Royce (R-Calif.) questioned witnesses on reducing the risk carried by taxpayers for the National Flood Insurance Program (NFIP) during a Housing and Insurance Subcommittee hearing entitled “Opportunities and Challenges Facing the National Flood Insurance Program.”
“Mr. Ellis, you said that ‘masking subsidies with lower rates prevents policyholders from understanding their true level of risk.’ Is my understanding correct that, under the current program, policyholders just see the premium payment that they need to make, right?” asked Rep. Royce.
“That’s my understanding,” confirmed Mr. Stephen Ellis, Vice President at Taxpayers for Common Sense.
“How difficult would it be to break out the subsidy? How difficult would it be to make transparent the amount the government, or other taxpayers, are covering on behalf of the homeowner?” continued Rep. Royce.
“One of the challenges will be for many of the policies that get the grandfathered subsidized rate, the pre-flood insurance rate map subsidies, they don’t know the actual elevation of the actual policy. I think it’d be something worth doing, especially considering, as we’ve recommended, that anything going forward trying to do affordability issues that the subsidy or support be means tested and outside the rate structure. So I think …read more
Source:: U.S. Rep. Ed Royce