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April 2004                                                                            Volume 6 - Number 3

 

 

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National Flood Insurance...

 

 


National Flood Insurance Program (NFIP)

Min Woo Kwak

 

The NFIP is a Federal program enabling property owners in participating communities to purchase insurance protection against losses from flooding. This insurance is designed to provide an insurance alternative to disaster assistance to meet the escalating costs of repairing damage to buildings and their contents caused by floods.

 

The National Flood Insurance Act of 1968 allows Mitigation Division to make flood insurance available only in those areas where the appropriate public body has adopted adequate floodplain management regulations for its flood-prone areas. Without community oversight of building activities in the floodplain, could be undermined or nullified by the careless building of others. Unless the community as a whole is practicing adequate flood hazard mitigation, the potential for loss will not be reduced sufficiently to affect disaster relief costs.

 

Therefore, I was recognized how the NFIP is important and really need for protecting our properties and lives. I had some researches about polices, premiums, and claims by fiscal year in U.S.

 

- Policies in Force

Fiscal year

Polices in Force

1998

4,186,613

1999

4,260,285

2000

4,383,266

2001

4,474,652

2002

4,499,183

 

- Premiums

Fiscal year

Premium

1998

$1,617,234,035

1999

$1,684,506,694

2000

$1,730,995,703

2001

$1,747,426,181

2002

$1,779,737,005

 

- Numbers of Claims

Fiscal year

Numbers of claims

1999

38,304

2000

21,220

2001

51,620

2002

19,243

2003

17,781

 

- -Loss Dollar Paid

Fiscal year

Loss Dollar Paid

1999

$828,983,451

2000

$221,618,392

2001

$1,414,247,860

2002

$299,056,323

2003

$297,600,201