How the National Flood Insurance Program subsidizes living in high-risk flood zones.
by Jack Nicastro
Reason.com
At least 119 people have died as a result of Hurricane Helene as of Monday, reports CNN. While the Federal Emergency Management Agency (FEMA) is busy helping survivors in flood-stricken regions, its National Flood Insurance Program (NFIP) perversely incentivizes Americans to reside in these high-risk areas.
People choose to remain in flood-prone areas for many reasons, including proximity to family, work, and school. Uprooting oneself and one’s family can be a painful thing to do, and choosing to take on risk to stay where you’ve established your home is understandable. But choosing to stay in these areas genuinely does involve considerable risk. According to FEMA, the average flood insurance claim in 2018 was $40,000, and that risk should be borne by the risk-taker.