The issue with Flood insurance rates is they reflect risk just like car insurance. If I drive a 500 HP car, my insurance rates reflect the insurance risk for that the class of cars. If I don’t want to pay the rate, I don’t drive a 500 HP car.
FEMA has not been charging rate commensurate with the risk. The Congress has decided to resolve that disparity with the Biggert-Waters Flood Insurance Reform Act. Now the opportunistic politicians want to make hay with that–anything to get votes.
Commentary in response to: http://www.inforum.com/event/article/id/416808/
Those who want to fix the budget mess do not want to address individual policies/laws that result in excessive federal expenditures.
“Congress passed the Biggert-Waters Flood Insurance Reform Act in 2012 to make the nation’s flood insurance program more financially sound. The program eliminated and phased out subsidies for homeowners in flood-prone areas”
“However, an across-the-board delay in new maps taking effect will only further imperil the program’s solvency, while also robbing those policyholders whose remapped properties show a reduced risk of flooding the opportunity to enjoy the lower rates they deserve.”
Why the flood risk is high in the valley–the building in the flood plain raises the base flood elevation, in turn flooding more homes. The solution is to reduce the risk for all, not just for the FM metro region. The current crop of leaders have not the foresight to choose this long-term solution.
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