Maine reviews flood insurance amid climate change challenges

Maine has faced significant challenges due to climate change, with seven federal disaster declarations for severe storms and flooding in the last three years. Despite this, enrollment in federally-backed flood insurance policies is declining, leaving many properties and public infrastructure vulnerable. The state Infrastructure Rebuilding and Resilience Commission is exploring a public insurance option to provide a sustainable funding source for disaster response and resilience projects. Economist Charlie Colgan proposed a model that would initially serve public entities, potentially expanding to offer affordable coverage for property owners. The commission's discussions highlighted the inadequacies of current flood insurance, as many claimants have reported insufficient payouts compared to their premiums. For instance, a business owner noted spending $40,000 on flood insurance without receiving adequate compensation after a disaster. This dissatisfaction has contributed to the dwindling participation in the National Flood Insurance Program, prompting the commission to consider alternative solutions. In addition to the public insurance proposal, members suggested conducting a study to understand the reasons behind the decline in flood insurance participation and increasing municipal involvement in federal programs that lower insurance rates. The urgency of these discussions is underscored by the mounting costs of resilience projects and the need for concrete policy recommendations by November. As Maine grapples with the impacts of climate change, the commission's efforts to develop a robust insurance framework could play a crucial role in safeguarding both private and public interests against future disasters.