National Flood Insurance Program?

[James48843]

So...what do you all think about the National Flood Insurance Program?

The program pays people when their homes flood out with taxpayer money- it does not generate enough in premiums to pay for the claims.
And the program is currently set to expire at the end of September, and there isn't a whole lot of support to make it change and become self-sufficient.
This is clearly a government interference in the free market- in which home owners in areas subject to flooding are being compensated when we could be banning construction in all low lying areas.

What do you think?

Texas Republican vows to fight for flood insurance overhaul - POLITICO

 

[evilanne]

Although it would be difficult to insure all natural disasters, I think it should be fixed or at least improved to shift more of the cost from the government to the renter/homeowners. Unfortunately, some of those being impacted in costal states probably don't even have any insurance coverage.

 

[alevin]

Back in 1993 when 500-year flood on the Mississippi hit mid-continent, (think MO, IL, maybe some adjacent state areas), homeowners were bought out and relocated out of the 500-year floodzone rather than pay for rebuilding. that seems like a sensible solution to me. people don't have even $500 in savings for normal emergencies, these days.

Market-rate flood insurance can be bought for 500-year flood risk for about $1000, (I know from personal experience), separate from regular homeowners/renters insurance, but costly for people who don't have extra $500 to their name for emergencies. I carried flood insurance for a very very low risk home (estimated 500-year or even lower-risk flood zone at the time) awhile back, rates jumped hugely from a few hundred a year to $1000 a year (roughly), after Katrina even though I live at far opposite corner of the country and live in a relatively small unfancy house. I was told the jump in rates was due to Katrina. so taxpayers in the market-rate insurance pool still end up paying for others after a big disaster event.

Many people can't even afford a few hundred in auto repairs. My sis is one of those who couldn't keep her very aged creaky car running without intermittent family assistance. Living on fixed low-income. Many people don't even have credit cards. I'm personally acquainted with some of those young people and even some my own age who do not have credit cards and live from paycheck to paycheck. Living Paycheck to Paycheck is a Way of Life for Majority of U.S. Workers, According to New CareerBuilder Survey - Aug 24, 2017