The National Flood Insurance Program was created as a means to provide low-cost flood insurance and encourage responsible floodplain management while reducing costs associated with traditional disaster relief. However, a number of factors, including more severe weather have led to massive debt and highlighted other programmatic shortcomings. Without major structural reform the program could fail, leaving millions underinsured. Congress recently implemented a massive reform of the program and its policies in an attempt to ensure its near-term viability. These amendments address the majority of the issues raised by the public and the insurance industry, and constitute a significant shot in the arm for an ailing program.
Links to additional information:
Disaster Resource Center