Charlene Luke & Aviva Abramovsky

Abstract

The National Flood Insurance Program (NFIP) has fallen short in fulfilling its promise as a social safety net for flood loss victims. In place of the NFIP, this Article proposes a mandatory social insurance plan that would harness the strengths of the federal taxing authority to provide basic relief for flood losses occurring at an individual’s primary residence. Any plan addressing flood loss must navigate deeply contested views about government intervention, redistribution, private markets, environmental protection, and property rights. This Article argues that government intervention in flood loss relief is inevitable, at least for the foreseeable future, and that such intervention should focus on the ex ante provision of a social safety net. The proposed program is also designed to provide additional tools for addressing the complexities of flood loss, including reducing negative environmental externalities, and to offer the impetus needed to harmonize existing tax provisions and grant programs.

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