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Sat Sep 16, 2017, 03:40 PM

Flood insurance and Health insurance for all

Right now, federal flood insurance is not mandatory for people living in flood-prone areas, and it is very expensive because only people (who can afford it) who are most vulnerable pay for flood insurance. People living in the flood plain where flooding is not frequent or severe probably do not feel they need this expensive insurance--premiums might cost more than the repair costs.

Making it mandatory to have flood insurance if you live in the flood plain, no matter how great your personal risk is, lowers premiums for everybody by pooling risk. Some people will benefit more than other people when it floods, but everyone would be covered, and it benefits the group for everyone to be able to afford repairs. Hence imo flood insurance for all in the flood plain makes a lot of sense.

Spreading the risk for medical costs works the same way. Some will end up paying more in premiums than they otherwise would, but all would be covered. The group--our country--benefits when all its citizens receive health care.

Whether it's fine-tuning ACA or single-payer, the larger the risk pool, the better off we all are.

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Reply Flood insurance and Health insurance for all (Original post)
cyclonefence Sep 2017 OP
Weekend Warrior Sep 2017 #1
msongs Sep 2017 #2
Igel Sep 2017 #3

Response to cyclonefence (Original post)

Sat Sep 16, 2017, 03:59 PM

1. Difficult part of making flood insurace mandatory under current times.

 

There are two main groups living in flood zones. The very wealthy and the poor. I'm simply talking Florida here but that holds true for other states as well. Don't take my comment as absolute. It's not meant to be.

Currently it wouldn't lower premiums for everyone. It would lower premiums for the wealthy and take others premiums from zero to something. Flood insurance is mandatory in most areas by those holding the mortgage.

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Response to cyclonefence (Original post)

Sat Sep 16, 2017, 04:06 PM

2. living in a flood zone is a personal choice nt

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Response to cyclonefence (Original post)

Sat Sep 16, 2017, 05:21 PM

3. I can't say much about Florida and Georgia.

Too busy to pay attention there until today.

Consider this from 2016:

"Premiums for a newer primary residence in a 100-year floodplain with $250,000 of building coverage can range, under plausible assumptions, from $380$590 when the home is 24 feet above base flood elevation (BFE) or from $650$1,890 at BFE."

That's under $180/month. That's from http://www.rff.org/files/document/file/RFF-PB-16-10.pdf, whatever www.rff.org is this appears to be an in-house document.

Very few people with expensive homes in a 100-year floodplain in Houston avoid flood insurance and in the 100-floodplain mortgages pretty much require it here and have for decades.

In Houston some estimates are that half of the structures flooded are outside of any recognized floodplain.

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