Friday, January 06, 2006


Flood insurance might be another Katrina casualty

Interesting piece in the NYTimes today discussing the above. Even if the feds to bail on offering flood coverage, some company will probably come along to write it. Potential insureds won't like the premiums, though.

Modifying the program is not enough for Representative Wayne T. Gilchrest, a Maryland Republican whose district spans the state's Eastern Shore from the Atlantic Ocean to the Chesapeake Bay. Mr. Gilchrest, the chairman of the House subcommittee on fisheries, conservation, wildlife and oceans, says the flood insurance program encourages people to put themselves in harm's way by building on the water's edge, in the expectation that the federal government will bail them out.

"We need to eliminate incentives for people to move in to flood-prone areas, whether it's on the banks of the Mississippi River or the coast of Maryland or wherever," he said. He called the program "a huge burden that is only going to get worse."

Full story here

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