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View Diary: According to my home insurance plan (43 comments)

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  •  Subsidize? Mostly no. Underwrite? Mostly yes. (0+ / 0-)

    If you build on a flood plain and you have a mortgage with a federally regulated lender (which is most of them), you are already required to purchase flood insurance.

    If we consider FEMA assistance to be a sort of subsidizing of flood insurance, then yes, I think we should continue that, but I do not think it should be open-ended or permit rebuilding in places where nature is conveying a pretty clear message that severe and recurrent flooding is likely.

    On the other hand, since having flood insurance is something that is good for people at risk and for the economy, underwriting insurance that the market is not willing to provide seems a reasonable gov't function. That's not without some risk to taxpayers -- if the market could accurately calculate risks and premiums it would be selling the product -- but it is not a freebie to the policyholders either.

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