re: Risk 2.0 - FEMA Finnda Eat!

So FEMA just announced their first grant for IDA victims. I found it interesting that to be eligible, you had to be enrolled in NFIP at he time of loss, but did not have to experience a flood loss to be eligible (although the home has to be “substantially damaged” from any peril if not repeated flood damage).

The catch is that if you receive the grant, the property has to be enrolled in the NFIP for the life of the property. The qualified expenditures of the grant are largely flood mitigation, so presumably the flood risk should be reduced. So by the way the program is written, they will basically create a federal tax that runs with the property rather than the insured, and they have invested in that property not flooding. The overall program in LA has $40M in funding, so I suspect these grants won’t go very far. And most don’t know what their new premium is even going to be

Look for more free money to be handed out with stipulations like this that guarantee a premium base