Posted On: March 28, 2007, 8:35 am CDT

Posted By: adjusterjoe

Linda, You should take some insurance coursework. When government steps in, it means that it is not economically feasible for private carriers to write the coverage. Therefore, the GOV'T SUBSIDIZES IT. The gov't already loses billions on flood insurance. Why should we now lose more billions? You apparently have never been taught the economic principles of risk allocation. BTW, the reason for the replacment cost coverage endorsement requiring 80% to value coverage is to get the insured to pay enough premium. The insurnce industry is forced to do many things by the courts and some stupid things they do b/c they are run by bean counters, not insurance professionals. Look at Warren buffet, even though he is a billionaire, he looks at insurance as a tool only to get working capital (to use the premium before it is paid out in claims), which oges agianst the age old risk allocation statistics. Does that make him right? I don't think so. No, flood insurance should not be new and improved.