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Help me out. Not one private insurance company will insure against flooding, with the risk being too great. Apparently, the U.S. government decided that taking the risk to build in flood zones was an American birthright and that U.S. taxpayers would pay for losses of people who took on unreasonable risks. OK, fine, strike one for government overstepping its authority. The other night I saw a television commercial goading people to sign up for flood insurance. So now government has to increase the risk of taxpayers to bail out stupid people by encouraging them to live in flood plains and shove their losses for such stupidity onto others?

5 Thoughts on Why does the Federal government advertise for people to take advantage of flood insurance?
  1. Reply
    She It I do
    June 20, 2011 at 8:11 pm

    Well if you live in a flood pron area
    With a reputation of floods
    No insurance company will touch your home with flood coverage
    So the statement is for people who do not live in a flood danger area and not someone who lives in a place that
    Has a potential of floods every spring or heavy down pour

  2. Reply
    David H
    June 20, 2011 at 8:55 pm

    If a major floor hits the result will be economic turmoil if the people don’t have insurance. As you point out, the problem with the program is it encourages rebuilding in flood prone regions. I think they should refuse to cover people who won’t relocate after the first disaster.

  3. Reply
    June 20, 2011 at 9:45 pm

    If your property is put in a flood zone and there is a mortgage on the property, you have no choice but to purchase this expensive insurance from FEMA until your home is paid off or paid down enough that the mortgage holder no longer requires it. If your home is paid off, it is up to your discretion but many people don’t know where to purchase it. I think they are just educating people about it.

  4. Reply
    June 20, 2011 at 10:37 pm

    Flood planes change over time, it is not uncommon for someone to purchase a home just outside a flood plane and years later be in that flood plane. It is not smart to purchase one of these homes but not everyone owns one intentionally. What is very unfortunate is that these people at one time were able to get flood insurance in case of major flooding since they were not in a very high risk zone. Since their ability to purchase flood insurance has been lost (due to insurance companies refusing to cover) their homes are worth significantly less now because nobody wants to purchase a home with that type of risk associated with it.

    I am not sure on the issue of the federal government advertising for people to get flood insurance but I would hope that their target homeowners would be those near but not in a flood plane (to cover extreme situations). I am not sure why they would spend taxpayer dollars to advertise for insurance companies though, if a person lives in a situation where they need flood insurance we should not have to pay for advertising so they will get it.

  5. Reply
    Clark W. Griswold
    June 20, 2011 at 10:54 pm

    I imagine you could relate it to the banks that have failed. Before they failed they launched massive marketing campaigns to try and flood their companies with new capital. Our government is broke and gambling with their last dollar. Then of course one could argue that population control could be a motive, what better way to kill off people than to drown them. I would ask Kissinger about that one though.

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