Flood Insurance: Implications of Changing Coverage Limits and Expanding Coverage Page: 3 of 42


Letter 1
Background 4
Less Than Half of Policyholders Purchase Maximum Coverage
from NFIP for Buildings and Contents 10
Raising NFIP's Coverage Limits Would Likely Increase Both
Premiums Collected and the Program's Risk Exposure 16
Additional Options Could Expand Coverage for Some but Could
Undermine NFIP's Financial Stability 23
Agency Comments 29
Appendix I Objectives, Scope, and Methodology 30
Appendix II Comments from the Department of Homeland Security 35
Appendix III GAO Contact and Staff Acknowledgments 37
Table 1: NFIP Flood Zone Designations 6
Table 2: Baseline Estimated Impact of Higher Building Coverage
Limits, Fiscal Years 2002-2011 18
Table 3: Policies and Claims for Nonsubsidized, Manually-Rated
Policies for Residential Single-Family Dwellings, 2002-2011 31
Table 4: Estimated Impact of Higher Building Coverage Limits in
Alternative Scenarios, Fiscal Years 2002-2011 33
Figure 1: Change in Proportion of Residential and Commercial
Policies at Maximum Building Coverage, 2002 through
2012 11
Figure 2: Comparison of Median Home Values and Number and
Percentage of Residential Single-Unit NFIP Policies at
Maximum Building Coverage by State, 2011 13

GAO-13-568 Flood Insurance Coverage

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United States. Government Accountability Office. Flood Insurance: Implications of Changing Coverage Limits and Expanding Coverage, report, July 3, 2013; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc299233/m1/3/ocr/: accessed May 19, 2019), University of North Texas Libraries, Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.

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