The National Flood Insurance Program (NFIP), a part of the U.S. Federal Emergency Management Agency (FEMA), provides the majority of flood insurance on residential properties in the United States. While insurance agents sell nearly all NFIP policies through private insurance companies, the federal government still underwrites them. Flood insurance is also available from private insurers that underwrite it themselves and assume the risk. However, little systematic information is available about the size of the private market, how the policies that private insurers offer compare with those that the NFIP offers, or the reasons buyers choose private market policies over federal program policies. This report provides information in each of these three areas.
Table of Contents
Size of the Lender-Placed Market for Residential Properties
Procedures for Force-Placing Flood Insurance Policies and the Features of Private Policies
Stakeholder Perceptions of the Advantages of the Private Market
The research described in this report was sponsored by the Mitigation Division of the Federal Emergency Management Agency and was conducted as a joint effort of the Environment, Energy, and Economic Development Program (EEED) within RAND Infrastructure, Safety, and Environment (ISE) and of the RAND Institute for Civil Justice (ICJ).
This report is part of the RAND Corporation Technical report series. RAND technical reports may include research findings on a specific topic that is limited in scope or intended for a narrow audience; present discussions of the methodology employed in research; provide literature reviews, survey instruments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; or deliver preliminary findings. All RAND reports undergo rigorous peer review to ensure that they meet high standards for research quality and objectivity.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.