The Institutes

Huge losses put federal flood insurance plan in the red

 Thursday, August 26, 2010

 USA Today

In Wilkinson County, Miss., a home has been flooded 34 times since 1978. Extraordinary as the damage may be, even more extraordinary is that an insurer has paid claims every time, required no flood proofing, never raised premiums after a claim and vowed to continue insuring the house. Forever. The home's value is $69,900. Yet the total insurance payments are nearly 10 times that: $663,000. It's no surprise that the insurer faces huge financial problems. The insurer? The federal government.

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