U.S. Rep. Candice Miller's bill would end flood insurance program in '13

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WASHINGTON -- U.S. Rep. Candice Miller wants to get rid of the National Flood Insurance Program, saying property owners who pay into the program from low-risk states -- such as Michigan -- are being forced to cover losses in more flood-prone areas of the country.

Miller, a Harrison Township Republican, said Thursday that she is introducing legislation to end the program, which is running a $19-billion deficit that would have to be made up by those who pay into it.

Miller said she wants to leave flood coverage to the private sector and believes states could form compacts to spread risks. Her bill would end the current program by the end of 2013, allowing states time to come up with their own plans.

"The National Flood Insurance Program is a typical Washington boondoggle with an endless bureaucracy overseeing out-of-control spending," Miller said.

Michigan, she added, "has been turned into an ATM machine -- forced to pay for the flood risks that our state does not actually face."

According to statistics from the Federal Emergency Management Agency, more than $20 million in premiums were paid on the 25,000 flood policies in force in Michigan during the first 11 months of last year -- or about $800 per policy. Compare that with Louisiana, where $327 million was paid on about 483,000 policies during the same time period -- or about $675 per policy.

That difference seems even larger when considering that since 1978, claims in Michigan have totaled $45 million, compared with $106 billion in Louisiana.

FEMA, which runs the flood program, did not comment on Miller's proposal.

The flood insurance program was hit by a wave of claims in 2005, when hurricanes Katrina, Wilma and Rita ravaged the South and caused billions of dollars in damage. The program was forced to borrow from the government, but that did not result in a dollar-for-dollar increase in rates because such hikes are capped.

http://www.freep.com/article/20110218/NEWS15/102180336/1285/News15/U-S-Rep-Candice-Miller-s-bill-would-end-flood-insurance-program-13