9/23/2013 - GAO: Dramatic rise in share of policyholders with maximum flood coverage
Perhaps inspired by flooding incidents that have been particularly damaging, the number of business owners purchasing the maximum amount of flood insurance coverage possible has risen, a new report shows.
According to the U.S. Government Accountability Office, between 2002 and 2012, the share of commercial business owners buying the upper limit total of flood coverage rose from 21% to 36%. It also increased among residential homeowners, up from 11% to 42%.
In addition, the report determined the part of the country where most of those who purchase maximum coverage live. Primarily, they reside along the Gulf and East Coasts.
The GAO determined that it may behoove the federal government to increase coverage limits, as it ultimately may contribute to the program's net revenue.
The National Flood Insurance Program has been in place since 1968, allowing entrepreneurs and consumers the ability to recover from their losses after a flood incident. Flood insurance is typically not included in a standard homeowners or businessowners insurance policy.