Emergency Management - Essay Example

At its inception in 1968, NFIP provided insurance to citizens living near coastal areas. However, the government provided subsidies mainly to offset bills for poor families and reduce policy implicated economic effects. However, the management of Katrina Hurricanes, Wilma, and Rita caused NFIP to run in debts. Consequently, the government placed a bill that significantly faced out flood insurance subsidies. It is important to note that discontinuing federal subsidies and increase in insurance rates would result into social and economic effects in the country.

First, facing out the federal subsidies would significantly increase the cost of purchasing or managing an already built home. The inherent NFIP insurance premiums would additively increase property prices. Consequently, most citizens would not have the economic capacity to purchase homes either in low or high flood areas.Moreover, since high flood zones including Mississippi and Louisiana would incur higher NFIP insurance rates, economic value of the home property would significantly remain higher.

Consequently, most citizens from other US regions would not wish to relocate to such flood-prone areas. Essentially, such occurrence would fundamentally discourage the social life of US citizens by denying integration of persons from low and high flood zone areas. Therefore, it is imperious for the federal government to avoid discontinuing flood insurance subsidies to help mitigate potential socio-economic impacts.