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I'm not sure how insurance is a subsidy. Doesn't the cost get spread between insurees and the insurance company takes the foam off the top for itself?
by ajmurmann 8y ago
I'm not sure how insurance is a subsidy. Doesn't the cost get spread between insurees and the insurance company takes the foam off the top for itself?
- bdavisx 8y agoNational Flood Insurance is run by the government, it's not the same as most property insurance.
- function_seven 8y agoNot for flood insurance. There's no profit in it. The National Flood Insurance Program is a federally-subsidized program that loses about a billion dollars a year. https://www.cbo.gov/publication/53028 https://www.cbo.gov/publication/53028
- vorpalhex 8y agoFlood insurance is a different program. No actual company is stupid enough to put money that a floodplain won't flood. Instead the federal government uses tax money to basically back insurance so that when, surprise, your floodplain floods, the insurance companies aren't actually losing money.