The National Flood Insurance Program (NFIP) offers flood insurance and promotes floodplain management. CBO’s analysis of 5 million policies in effect in August 2016 showed that the NFIP’s expected one-year costs exceeded annual premiums by $1.4 billion. That shortfall stemmed primarily from premiums’ falling short of expected costs in coastal counties, which account for three-quarters of all NFIP policies nationwide.
This presentation examines the causes of shortfalls and the cost of premiums and describes the data and methods used in CBO’s analysis.
