.Today we are discussing should the government be involved in flood insurance or not. The National government has been looking at privatizing flood insurance.
Flood premiums have continued to come through the years. Some areas have seen more than a 700% premium increase over the last 10 years. The National Flood Insurance Program is more than $20 billion in debt. Each time a disaster hits they have to be given more money to provide the right disaster assistance to property owners. This has many people upset and desperate to find another option. So the conversation is started in D.C. should the government privatize flood insurance? Lets talk about this a little bit.
One of the major struggles with privatizing flood insurance has been making sure a stable private option is in place. Congress wants to avoid a company taking on a large amount of losses and not being able to keep affordability. Another struggle has been making sure people in areas that continue to flood are protected. One last thing has been correctly determining risk but private companies are actually doing a better job of this because of technology.
These struggles have made it very challenging through the years. So what do you think? Should flood insurance be privatized? Comment below to let us know what you think.
If you have questions about flood insurance or private options you can always visit our website Flood Insurance Guru. You can also visit our YouTube channel or Facebook page where we do daily flood education videos.