Flood Insurance Reform Efforts Stalled
According to Yahoo Finance, Congress has not been eager to move forward on some reforms to the federal flood insurance program. The much lamented storms Katrina and Rita in 2005 threw the program 20 billion dollars in debt, and recent storms in the midwest have brought problems with the flood insurance program back into the light.
Unpopular actions include raising premiums and mandating coverage in more areas. Of course, the present program is heavilly subsidized and so the burden falls on taxpayers. Many owners of vacation homes in coastal area could have their flood insurance subsidized too.
So people can certainly live where they want to, but perhaps they need to bear more of the cost of doing so. And especially, they should bear more cost if they are purchasing flood insurance for a vacation home!
federal flood insurance, national flood insurance, flood insurance reform, flood insurance debt
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