Coastal Erosion and the United States National Flood Insurance Program

Abstract

Coastal erosion and its impact on the National Flood Insurance Program (NFIP) as well as the economic viability and environmental integrity of coastal communities is a major concern of the United States. Homes along the U.S. Atlantic and Gulf coasts face a risk from erosion that is comparable to that of coastal flooding. However, the NFIP does not currently map erosion hazard areas and therefore is unable to inform homeowners of the risk to their property. Hence, insurance rates do not reflect the magnitude of the erosion risk.The Federal Emergency Management Agency (FEMA) that is in charge of the National Flood Insurance Program should develop erosion hazard maps and make them widely available to the public, but the U. S. Congress has not mandated such an action because the political will is lacking. Coastal realtors are not in favor of such erosion maps because they would have to be revealed to prospective property buyers. The U. S. Congress should require FEMA to include the cost of expected erosion losses when setting flood insurance rates along the coast. Beachfront property owners are opposed to such an action as they have not been paying insurance rates that reflect the combined hazards of coastal floods and erosion. The National Flood Insurance Program continues to experience large deficits in the billions of dollars, which must be borne by the taxpayers—this amounts to a subsidy for coastal homeowners as the program has not been actuarially sound.