Subrogation: Enforcing Flood Plain Management

Abstract

Over the years, the Federal Government through the National Flood Insurance Program has attempted to address the issue of flood plain management. Questioning the extent to which the enforcement of Federal regulations has reduced flood losses, the Government has begun to institute legal actions called subrogation in an attempt to recover insurance proceeds paid and better encourage sound flood plain management. The legal actions brought thus far, already totaling over $120 million, allege that various communities, builders, developers, engineers and architects, by their actions or inactions, have caused or contributed to various drainage and flooding conditions for which the National Flood Insurance Program has been called to reimburse the losses of flood victims. Engineers, particularly those who work with developers, builders, or those who design flood control projects should be aware of the subrogation action and the basis upon which, they too, could face legal liability.