VIDEO: Build for Future Disasters Act of 2020
by Maureen Couch
The Build for Future Disasters Act of 2020 has been introduced to end National Flood Insurance Program (NFIP) subsidies for newly constructed properties in areas vulnerable to flooding. In an October 2020 press release from U.S. Representative Andy Barr (R-KY), the bill, introduced by Rep. Barr and Representative Scott Peters of California, is meant to incentivize smart methods and planning of new construction, and put an end to the costly and inefficient system of build-flood-rebuild.
In the press release, BlueDot Senior Advisor Craig Fugate weighs in: “If the private sector looks at future flood risk when pricing insurance, why shouldn’t the federal government? The current system cheats taxpayers and hides the cost of flooding from homebuyers in perpetuity. This legislation would go a long way toward tackling that problem by ensuring federal insurance for new construction in flood-prone areas reflects real flood risk.”
To assist in educating the public on this act, Craig put together a short video on what the act means, the impact it will have on citizens and businesses, and what the financial future holds for natural disaster response and recovery.