Flood Insurance:

Information on the Mandatory Purchase Requirement

RCED-90-141FS: Published: Aug 22, 1990. Publicly Released: Sep 21, 1990.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed property owners' and lenders' compliance with the mandatory flood insurance provisions of the Flood Disaster Protection Act of 1973.

GAO found that: (1) the provision required flood insurance coverage only for properties in special flood hazard areas secured by federally regulated or secured loans; (2) in Maine and Texas, about 22 percent and 79 percent, respectively, of properties for which flood insurance was required were not covered; (3) the Federal Deposit Insurance Corporation reported that, in 95 percent of the cases it examined in the last 3 years, the properties were covered by the required flood insurance; (4) of the lenders the Federal Reserve System examined for compliance in 1988, 83 percent had no violations of flood insurance regulations; (5) many homeowners in special flood hazard areas found flood insurance premiums too expensive and allowed their policies to lapse; (6) lenders reported that flood insurance rate maps were difficult to read, not always accurate, and expensive to maintain; and (7) the Federal Emergency Management Agency's Federal Insurance Administration took such actions as publishing guidance, sponsoring conferences, and collecting and reporting compliance information to improve compliance with the provision.

Sep 6, 2016

Aug 24, 2016

May 26, 2016

Apr 18, 2016

Mar 24, 2016

Mar 10, 2016

Feb 4, 2016

Sep 29, 2015

Mar 25, 2015

Feb 19, 2015

Looking for more? Browse all our products here