http://www.cato-at-liberty.org/2009/08/07/flood-insurance-mend-it-or-end-it-but-dont-just-extend-it/
Flood Insurance: Mend It or End It, But Don’t Just Extend It
Posted by Mark A. Calabria
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Before leaving for the August recess, the House of Representatives passed a bill (HR3139) to extend the authority for the National Flood Insurance Program (NFIP) until March 2010. The program was set to expire on Oct. 1, 2009. The bill now goes to the Senate. Instead of taking up HR3139, the Senate should insist on real reforms to the NFIP, rather then a blanket extension.
Since Hurricane Katrina, the NFIP has operated under a deficit of close to $17 billion, which had to be borrowed from the Treasury in order to pay claims. Under the NFIP’s current structure, it cannot even make the interest payments on its borrowing; these losses will ultimately hit the taxpayer.
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In one instance, a house in Houston this is valued at around $100,000 received over $800,000 in flood insurance claims over a 20-year period, before it was finally destroyed.
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At the very least, we, te taxpayer, should only be forced to insure something once.
And, what exactly is the gooferment doing in the “insurance business” any way?
Argh!
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