The flood insurance program was created because private insurers would not insure property against flood losses. A federal program was then created to protect homowners and lenders from flood damages.
Now lets follow a logic sequence here:
1. Private insurers do not insure for floods why? Becuase they cannot make money or stay in business paying out flood claims.
2. Federal government takes over responsibility for flood insurance therefore, Federal Flood insurance is truly a subsidy. Yes they recoup part of the expense with premiums, but the only way it will ever approach a break-even scenario, is if they expand flood coverage mandates to include all or almost all property owners.
3. Expanding Floodplains to include more properties will generate more premiums.
4. Including properties in areas not likely to flood will generate premiums, but little or no claims.
5. FEMA is in charge of managing all aspects of this program… so who are they accountable to? How do we know they are making decisions to PROTECT US, and not to just EMPTY OUR WALLETS?
