References: A Step Toward Flood Insurance Fairness – WSJ
People build houses on stilts right on the beach all along the East Coast. People buy houses in river flood plains. When those houses are destroyed or damaged by a flood, including flooding from a hurricane, people rebuild in the same place, some multiple times. What’s the definition of insanity? Doing the same thing over and over and expecting a different result.
People in these areas are entitled to flood insurance for which they do have to pay a modest premium, but which is otherwise subsidized by our federal government – that is, by you. Last year, according to the agency that administers this insurance boondoggle, the Federal Emergency Management Agency (better known as “FEMA”) paid $1.2 billion in claims. Now the agency wants to increase premiums, and some increases could be substantial.
According to FEMA, “[t]he premium hikes are necessary because the flood program is insolvent. The program currently owes the Treasury more than $21 billion, racked up by an average of $3 billion a year in claims from 2009 to 2018. The average flood claim in 2018 was $42,580, backed by an average annual premium of $642.” President Biden has “proposed $358 million in new subsidies for the flood program.” And with the seas rising in coastal areas, this is going to get much, much worse.
We say enough is enough. If people are stupid enough to build in an area susceptible to flooding, it should be at their risk, not your financial risk. Of course, they likely wouldn’t build (or rebuild, as the case may be) without the government subsidized insurance they can get relatively cheaply. So let’s just eliminate that useless program, save the money, and thus encourage these often-rich idiots to build elsewhere. Stop wasting our money to offset the stupidity of people who are stupid, yet still bright enough to know a government-sponsored scam of the taxpayers when they see one that can advantage them.
I agree. I just read a statistic that only 18% of those living in a flood zone have flood insurance. The other 82%, for some unknow reason, feal the government will bail them out, namely the Democrats. Since when did the government, take on the responsibility of providing a blank check. Our current president thinks that the well is full of dollars, I hope he learns before the well runs dry. My opinion, if you choose to live in a high-risk area, fire, tornadoes, floods, avalanches, earthquakes etc. I don’t care, however spend the necessary funds to secure your investment. I am tired of spending my tax dollars on your lack of good judgement.