Flooding and other Natural Disasters - Part 2
Texans, and our friends from Louisiana, showed the rest of the world how to respond to a natural disaster during Hurricane Harvey. Individuals helped each other. There was no government interference in rescue efforts. Neighbors were helping neighbors. Thankfully, the people of Southeast Texas did not wait to be told what to do, and when to do it. We got out. We checked on our friends and neighbors. We launched boats and rolled lifted trucks through neighborhoods. We carried our children, the elderly, and our pets to safety.
Government does nothing effectively or efficiently. The moment they insert themselves into rescue efforts, the worse it becomes. For evidence, research the governments handling of Hurricane Katrina.
There is a reason that private insurance companies stopped providing flood insurance to coastal properties. This market was a money loser for these companies. There is no incentive for a business to lose money. So what does our federal government do in response? In their infinite wisdom, they create the taxpayer funded National Flood Insurance Program (NFIP). This now incentivizes individuals to continue to build in high risk flood areas and then pass the risk on to the rest of the taxpayer base. To put it simply, the taxpayer in South Dakota (very low risk of natural disaster or flooding) is now paying to recover someone's home in Galveston (very high risk). Brilliant!
Instead, individuals should be assuming the risk for themselves and their property not "society". If you wish to own or build a home along coastline, a river, a bayou or a lake, you assume that risk not the rest of us. Without the NFIP, for lower risk neighborhoods such as those in HD135, private insurers will start to provide insurance to these people and communities. They will price it according to the market and your specific flood risk. These companies are more likely to take on this risk in our communities than they would be in areas with rivers, bayou's and ocean coastlines. Policies would likely be very affordable depending on the insurance level you want and the history in your neighborhood. Bottom line, get government out of the insurance industry.
Now, with privatized flood insurance available, the free market will determine pricing. And the individual will measure their risk and whether or not they should purchase coverage for their property. The individual assumes the risk.