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Through the National Flood Insurance Program "one percent of homes have been responsible for more than 25 percent of the claims." In various ways the program is
by dv_dt 9y ago
Through the National Flood Insurance Program "one percent of homes have been responsible for more than 25 percent of the claims." In various ways the program is not allowed to deny issuing policies.
http://www.npr.org/sections/money/2017/09/29/554603161/episode-797-flood-money http://www.npr.org/sections/money/2017/09/29/554603161/episo...
Though the podcast doesn't mention it, I'm sure politicians have blocked consideration of climate change in any overt way.
Edit: excerpts repackaged in text form (the podcast is much more in-depth)
http://www.npr.org/2017/09/13/550607447/why-the-government-loses-money-on-selling-flood-insurance http://www.npr.org/2017/09/13/550607447/why-the-government-l...
- Retra 9y agoI'm not sure what the relevance of insurance claims is. Flood insurance would be a scam if they only insured low-risk homes, and it would be horribly inefficient to only insure high-risk homes. When 99% of the insured cover the 1% that make claims, that looks like it's working as designed to me.
- dv_dt 9y agoIn the podcast IIRC one house has had $4M worth of claims across 4 floods over 8 years... the claims should be paid on existing policies, but new policies shouldn't be issued for that house unless major changes are made.
- zaroth 9y agoCoverage limits make that impossible.
- acdha 9y agoThe relevance is covered in more detail in the story but it basically comes down to not being able to charge market rates. The cap is well below what normal actuarial practice would call for but politics makes changing that hard.