Why does the FEMA (Federal Emergency Management Area) only allow property owners to collect insurance if they rebuild in the same place and same way as before?
Thanks!
The Federal Emergency Management Agency (FEMA) is a government agency in the United States that provides assistance and support during and after natural disasters. One of the programs they offer is the National Flood Insurance Program (NFIP), which provides flood insurance coverage to property owners in flood-prone areas.
When a property owner experiences flood damage and collects insurance through NFIP, there is a requirement known as the "Repetitive Loss Property" rule. According to this rule, if a property has had multiple flood insurance claims and has received assistance from NFIP in the past, FEMA requires the property owner to take certain actions to minimize future flood damage.
One of these requirements is that the property owner must either elevate or relocate the structure to reduce the risk of future flood damage. FEMA encourages property owners to bring their buildings up to code and make them more resilient to future flood events.
The reason behind this requirement is to reduce the financial burden on both the property owner and the government. By implementing mitigation measures, such as elevating the structure or relocating it to a less flood-prone area, the property owner decreases the likelihood of future flood damage. This, in turn, reduces the number of repetitive flood insurance claims and the subsequent financial burden on NFIP and FEMA.
In summary, FEMA mandates that property owners who have received multiple flood insurance claims and assistance from NFIP must take steps to mitigate future flood damage. This requirement is in place to reduce the financial burden on both the property owner and the government, and it encourages the adoption of measures to minimize the risk of flooding.