The federal government’s multibillion-dollar flood insurance program could run out of its reserves soon and be forced to borrow money from taxpayers to pay claims from recent hurricanes.
Two new reports reveal the precarious financial condition of the National Flood Insurance Program, which insures 4.7 million properties, following huge flood damage from Hurricanes Helene and Milton.
The NFIP sells most of the nation’s flood insurance and has struggled financially for nearly 20 years as claims paid have exceeded premiums collected. Taxpayers have spent billions of dollars paying claims when the program has run out of money.
There is no indication that the NFIP will not be able to pay claims from Helene, Milton and other recent floods. The NFIP has about $4.3 billion in reserves and can borrow up to $10 billion from the U.S. Treasury if it runs out of money. It also has reinsurance that might pay claims.
