Fed. Flood Insurance Tanks

2seaoat wrote:I have argued that the insurance program should be overhauled. First, every property is registered in an identified floodplain. A person can purchase flood insurance, but they will have to buy a secondary private sector insurance policy to supplement their primary federal flood insurance. The first loss will only pay 75% of any loss and supplemental insurance will have to pay the last 25%. A second loss on the property in any amount will reduce the claim to 50% coverage of actual damage, and the balance will have to be covered by supplemental insurance. The third loss will only cover 25% of the damage, and from that point on.....only 25% of future damage with the gap requiring market rate flood insurance.....it will take about 50 years, but the problem will be solved. People will not be able to retain ownership of structures in high risk areas without paying the real societal cost. Problem solved.

ZVUGKTUBM wrote:

2seaoat wrote:I have argued that the insurance program should be overhauled. First, every property is registered in an identified floodplain. A person can purchase flood insurance, but they will have to buy a secondary private sector insurance policy to supplement their primary federal flood insurance. The first loss will only pay 75% of any loss and supplemental insurance will have to pay the last 25%. A second loss on the property in any amount will reduce the claim to 50% coverage of actual damage, and the balance will have to be covered by supplemental insurance. The third loss will only cover 25% of the damage, and from that point on.....only 25% of future damage with the gap requiring market rate flood insurance.....it will take about 50 years, but the problem will be solved. People will not be able to retain ownership of structures in high risk areas without paying the real societal cost. Problem solved.

Excellent points. You build or buy on a barrier island, YOU assume the cost and associated risk.