House Subcommittee Renews Call for Private Flood Insurance

By | November 19, 2014

  • November 19, 2014 at 2:55 pm
    Dave says:
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    The private market is where this insuarnce shoukd have ben placed from the get go.

  • November 20, 2014 at 12:34 pm
    Libby says:
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    Good luck finding a private market that will write flood in a flood zone. It’s government funded for a reason.

    • November 21, 2014 at 10:14 am
      Roland says:
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      And why won’t they write it, at least not at the actuarially unsound rates that property owners have become accustomed to? Because it’s stupid to build or buy in a flood zone, that’s why.
      The market informs us of reality. Screwball government interventions, on the other hand, entice us with the lie that central planners can wave their magic wand and suspend the laws of economics so there will be no penalties for doing dumb things.
      Unfortunately, government flood insurance has lured many decent, hard-working people into this trap and now there is no good way out.

      • November 22, 2014 at 3:48 pm
        Robert says:
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        Flood Insurance rates on structures built in flood zones are the one’s that are actuarially rated. Houses built before flood risk’s were mapped are the only subsidized rate. I believe the thinking was to not punish those who unknowingly built at risk.

    • November 23, 2014 at 10:44 pm
      Dave says:
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      Right, only governments can screw things up best left to private markets. What on earth makes you feel government hacks can handle such complicated issues such as insurance?

      • November 24, 2014 at 7:34 am
        Roland says:
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        Dave, that’s a great point. Conventional thinking is that the more complex something is, the more need there is for wise government central planners to control it. In reality, it is exactly the opposite. Only when entrepreneurs are free to perform economic calculation based on market prices – and to succeed or fail based on their skill at anticipating what consumers want – can we have the best allocation of scarce resources. Look at how incredibly complex the structure of production is for a microwave oven, for example. Thousands upon thousands of people all over the world are involved in its production, from the raw materials to the artwork on the box it comes in. Yet with no guidance from any Microwave Oven Czar, entrepreneurs voluntarily cooperating with one another in pursuit of profit have figured out how to put it on the shelf at my Walmart for less than 50 bucks. Capitalism is a miracle, and people who reject it because politicians tell them to are economically illiterate suckers.

  • November 22, 2014 at 3:54 pm
    Robert says:
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    Mandatory Purchase of Flood Insurance requirement = covering mortgages. If uninsured can’t repair after flood they walk away from mortgage. Lender eats loss, big enough flood lender goes under. FDIC must make depositors whole (see 1993 Midwest floods, 1994 S&L crisis). This results in remaining lenders paying higher fees to FDIC, lenders profits take a hit to cover these fees. Large uninsured losses risk FDIC not being able to cover and taxpayers having to bailout the banks. Long story short – Private Insurance must provide same coverage as NFIP to avoid above.



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