House Expected to Go Along with 1 Year Flood Insurance Extension

By | September 23, 2010

  • September 23, 2010 at 12:43 pm
    StevenC says:
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    What the government sells that is called “flood insurance” is not insurance. It is a contract between the Federal Government which will pay monies, essentially out of a small pool of money and the US Treasury if there is a flood.

    Time and again Congress has thrown billions in to the “program” after cat events. That money comes directly out of the US Treasury. Which means that a person paying income taxes who lives on the top of a mountain and who would never have a flood event is paying for flood “losses”. The federal system is not actuarily sound and never has been. And because of the way it works (or does not work) absurd development occurs in flood plains that would never have a house or business on them if flood “insurance” rates were based on reality.

    Congress is not going to fix the problem such that the FEMA program acts more like real insurance. Because they have no concept of business ande certainly no idea what it takes to make a dollar.

    The FEMA federal program is a joke.

  • September 23, 2010 at 2:27 am
    Dipper says:
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    Is anyone else surprised that an actuarily unsound government run “insurance” program is basically bankrupt???

  • September 23, 2010 at 2:32 am
    Realist says:
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    What else is new? This isn’t……..



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