Federal Flood Insurance Is Now a Disaster Itself
8th August 2018
An instructive example is the current debate over reauthorization of the National Flood Insurance Program, enacted in 1968. Passage of this bill was in response to escalating premiums on privately issued flood insurance. It was thought that by mandating coverage, the federal government could manage flood insurance more efficiently than the private sector.
After 50 years of experience, this program has run up a $25 billion deficit. Millions of American taxpayers now shoulder the burden of covering this $25 billion shortfall to protect a small percentage of the population, which continues to build and re-build in designated floodplains.
If your house floods out, you ought not to be able to rebuild in the same place and still get any form of insurance, government or private. Otherwise you’re just rewarding stupidity.