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I mean, the southern tip of FL, the outer banks of NC, and the mid gulf coast really are the problem [1, NOAA, Return Period Between Major Hurricanes]

The CBO [2, "The National Flood Insurance Program: Financial Soundness and Affordability"] calls that out as clearly as possible without naming names.

"In particular, the overall shortfall of $1.4 billion is attributable largely to premiums’ falling short of expected costs in coastal counties, which constitute roughly 10 percent of all counties with NFIP policies but account for three-quarters of all NFIP policies nationwide."

You know who pays the highest NFIP rates? Connecticut. The lowest? Florida.

[1] https://www.nhc.noaa.gov/climo/images/return_mjrhurr.jpg

[2] https://www.cbo.gov/publication/53028




> The CBO [2, "The National Flood Insurance Program: Financial Soundness and Affordability"] calls that out as clearly as possible without naming names.

The CBO is calling out FEMA's estimates of future losses as being too low. As far as the administrators of the program are concerned, premiums are set appropriately. This report doesn't really apply to this discussion, other than to highlight that the coastal counties cost significantly more (and pay significantly more) than the inland counties covered by the program.


CBO's implication being that FEMA is knowingly setting future losses in coastal areas too low.

And indeed, the reason FEMA is doing that is because Congress explicitly tells it to.

See this example of political football:

Biggert–Waters Flood Insurance Reform Act of 2012 passed to properly set rates.

https://en.m.wikipedia.org/wiki/Homeowner_Flood_Insurance_Af...

Leading to the Homeowner_Flood Insurance Affordability Act of 2013, essentially prohibiting rates from raising. Amazingly, the CBO scored this as neutral due to some offsetting surcharges elsewhere.

https://en.m.wikipedia.org/wiki/Homeowner_Flood_Insurance_Af...

Suffice to say, Florida votes are absolutely being bought with artificially low rates through the NFIP.




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