FEMA: Flood Insurance may be Lacking

In the wake of Hurricane Sandy, the Federal Emergency Management Fund (FEMA) has enough funding for disaster relief, but it may come up short for the federal flood insurance program, MHProNews has learned from CNNMoney. The National Flood Insurance Program (NFIP) paid out $1.8 billion following Hurricane Irene last year, but the tab this year is expected to run in the multi-billions, although it is too early to know the actual figure. FEMA still owes $18 billion to the Treasury Department for Hurricane Katrina, and while it has access to $3.8 billion, Congress may have to add funding to the program. Private insurers do not sell flood insurance. People in the Northeast are less likely to buy flood insurance than those living in the hurricane-prone South. However, since Hurricane Irene hit last year, 14 percent of homeowners living in the Northeast bought federal flood insurance, an increase from five percent in 2011.

(Photo credit: Spencer Platt/Getty Images)

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