Flood Insurance Leads to Building and Rebuilding That Shouldn’t Occur
The existence of federal flood insurance, and the government’s willingness to compensate owners of washed-out properties after disaster strikes (either at highly-subsidized flood insurance rates, or sometimes in cases where properties weren’t even covered in the first place), gives the rich (and, yes, many non-rich) the ability to rebuild their shoreline or riverfront playgrounds at taxpayer expense as often as the disasters hit.
Logical question: If a private insurer isn’t willing to underwrite the risk of flooding at a reasonable fee, doesn’t that tell you that the hazards of building or rebuilding are too great?
Porkopolis, who has done a lot with the topic, has more.
