The National Flood Insurance Program (NFIP) is in debt to the American tax payer to the tune of $18 billion. Congress is considering forgiving the debt and they approved a six-month program extension to discuss this option.
Forgiving the debt, which amounts to another ill-advised bailout, is but one problem; ignored is the fact that the debt does not necessarily add up. Between 1990 and 2007, the NFIP collected over $28 billion in premiums. During the same period it paid out just over $30 billion in claims; a difference of less than $2 billion.
Assuming 30 percent for operating costs ($8.4 billion), the debt calculates out at just over $10 billion. Where is the other $8 billion?
MyNewMarkets.com has posted, “” on their website exploring this gap and the underlying causes in much greater detail. Additional posts will offer an option to the current plan.
Topics Flood
Was this article valuable?
Here are more articles you may enjoy.
Viewpoint: Why Brokers Have Little to Fear and Everything to Gain From AI 
Florida Mobile Home Insurance Market Still Struggling With Premiums, Coverage 
Here’s a List of Gulf Energy Infrastructure Damaged in Iran War 
Verisk: Insurance Claims Volume Fell to 5-Year Low in 2025 
