Posted On: July 17, 2008, 2:44 pm CDT

Posted By: Peony

I don't agree with your position. The reason flood insurance is subsidized by the feds in the first place is b/c the exposure is just too large for the private market. When flooding occurs, it is catastrophic in that it affects many, many properties at the same time. If the peril of flood was not subsidized & private carriers were forced to provide it, many of them that did enter the flood market (& scant few would) would be completely bankrupt after the first major flood. The private sector could not charge nearly enough to cover losses b/c if the rates were actuarially sound, very few would be able to afford it. I agree, the fed program needs some overhauling, but doing away with it is not the answer. The peril of wind will follow suit in due time.

P.S. The word is commensurate, not commiserate.