Flood insurance and coastal development

Flood insurance coverage is now widespread among coastal homeowners in the United States. Indeed, coverage is far higher:t among coastal residents than those within river floodplains (Kusler ' 1983, 7). Serious questions, however, have been raised concerning the efficacy of the flood insurance program in reducing flood losses along the shoreline (Miller 1977,40-41; Kusler, 1982, 45-46; U.S. General Accounting Office, 1982; Burby and French, 1985, 103). For example, Miller noted that the availability of Federal Insurance Administration flood insurance increased the demand for coastal properties, increased property values, and did not diminish the siting of houses within high hazard areas. Nevertheless, Miller (1983, 157), drawing from case studies in over two dozen coastal communities, notes that in only one--Galveston, Texas-- did the availability of flood insurance make a difference between development or no development. Kusler (1982, 45) indicates that most of the state and local officials he interviewed "were of the belief that the insurance had encouraged some development although how much was unclear. " Burby and French (1985, 88) indicate "that participation in the National Flood Insurance Program is associated with continued development of flood-hazard areas, particularly in coastal communities. " Partly in response to concerns such as these, Congress established the Coastal Barrier Resources System in 1982. Federal expenditures, including the writing of new federally-subsidized flood insurance policies were prohibited within the 186 designated coastal barriers, I This material is based upon work supported hy the National Scienc