chanel
Silver Member
The Federal Emergency Management Administration is an almost exclusive provider of flood insurance, which gets channeled to other insurers who act as agents.
However, the government loses money on the policies, creating a burden on all taxpayers. New Jersey has nearly 235,000 FEMA flood policies offering $54 billion in coverage.
One of the biggest problems with government-issued flood insurance is its costs to U.S. taxpayers.
Congress and FEMA had intended flood insurance to be self-sufficient, funded with premiums of policyholders.
However, the National Flood Insurance Program is subsidized and cannot manage risks like private insurers, according to the Government Accountability Office, or GAO, the investigative arm of Congress.
Premium rates do not reflect flood risks, grandfathered-in properties allow property owners to pay much less than they otherwise should, and the government cannot reject high-risk applicants.
A GAO report said repetitive losses represent 1 percent of policies but account for nearly a quarter of all claims.
Federal flood insurance will lapse without Senate action today; could hurt shore housing market - pressofAtlanticCity.com: Atlantic County News
Disclaimer: We have flood insurance as required by law.
But can't we look at this and guestimate how cost efficient government health insurance will be? Pretty good historical example if you ask me.
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