State Sen. Bert Stedman, a Republican from Sitka, has proposed a bill to create a state-managed flood insurance alternative in Alaska. The initiative aims to address the inadequacy and high cost of the federal flood insurance program, which many Alaskans find unaffordable.
The proposed Alaska Flood Authority would provide more affordable coverage, tailored specifically to Alaska’s unique flood risks, including floods from events like glacial outbursts and certain landslides.
Stedman’s proposal is a response to the increasing frequency of destructive natural disasters in the state, such as the 2023 floods in Juneau and the Kuskokwim River area. His bill includes provisions for covering mudflow as a form of flooding, which may allow certain landslides to be insured.
The goal is to reduce premiums, which are often considered excessive under the federal National Flood Insurance Program NFIP, and to offer a more localized, cost-effective solution.
The state flood insurance program would be funded by the state, with rates determined by historical flood and damage data, and would not charge excessive, inadequate, or unfairly discriminatory rates.
While the proposal aims to provide a lower-cost alternative, some, like insurance agent Emil Mackey, are skeptical about whether rates will truly be lower without federal subsidies. Nevertheless, there is broad agreement on the need for landslide insurance, a challenge currently unmet by private insurers in the region.
Stedman hopes to advance the discussion on landslide coverage as the bill moves through the Alaska legislature, with the legislative session starting on January 21.