The impact of newer, actuarially sound National Flood Insurance Program rates will mostly be felt by lower- and moderate-income homeowners, and the new rates will not pay off the program's debts, a FEMA official said today.

In a wide-ranging briefing on the Biggert-Waters Act—the law that extended the NFIP for five years—Edward Connor, deputy associate administrator for the Federal Insurance and Mitigation Administration, the FEMA sub-agency that manages the NFIP, estimated that only 1.1 million of the 5.5 million homes in the NFIP will be affected by the phase-out of subsidized rates over four years mandated by the new law.

But while he contends that the new rates will not provide enough money to pay off the NFIP's debt, he says it will provide greater stability to the program.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.