Government to Reform Flood Program

The federal government is reforming the nation’s largest flood insurance program to cut losses by half over the next three years, said Federal Emergency Management Agency Director James L. Witt. The National Flood Insurance Program, which guarantees private insurance plans covering 3.9 million homes, will charge higher premiums to homeowners in flood-prone areas, Witt said. FEMA also will discourage the U.S. Army Corps of Engineers, which regulates building on flood plains, from issuing building permits in wetlands. Insurance companies that write NFIP policies and environmental groups praised the announcement.