Tag: Flood Insurance

This is not the call for an end to bloated government that abuses us, but it is a good start in examining the worth of programs that are designed to provide advantage to those [WHO DECIDE TO LIVE IN] in high risk areas.  Looking forward, there are a lot of federal government programs that involve the states, that should be dealt with in like fashion.  For example, Michigan is a donor state with our road taxes coming back to us less than 100% of what we send DC.

U.S. Representative Candice Miller (MI-CD10) recently sent a letter to the Michigan Governor Rick Snyder requesting that his administration and the Michigan Legislature explore possible options for allowing Michigan to opt out of the National Flood Insurance Program (NFIP).  Miller said:

"The NFIP is a broken and unfair federal program that must be eliminated.  This program continues to spiral into billions of dollars in debt - currently reaching $28 billion and no end in sight.  The NFIP is inflicting financial harm to Michigan residents across the state by forcing many to pay excessive premiums for flood coverage they don't need to subsidize the artificially low premiums in flood prone states.  For instance, according to the Federal Emergency Management Agency, NFIP policyholders in Michigan paid $315.5 million in premiums and received $60 million in claims over the period from 1978 through 2012, a ratio of over five dollars paid into the program for every one dollar received in benefits.  In the same time period, the state of Louisiana paid in only about one dollar for every four it received in benefits.  That is what happens when rates are set by political considerations instead of actual risk.  In short, the federal government is a bad insurance company and should not be in the business.

"I continue to ask the question - why in the world is the federal government in the flood insurance business?