News from New York Times:

CARBONDALE, Ill. — THERE was no question that the nation’s troubled flood insurance program needed an overhaul when Congress passed legislation last year to eliminate many of the subsidies that had put the program about $ 25 billion into debt. But these reforms offered too much tough love and too little compassion for flood-prone homeowners.

The National Flood Insurance Program was enacted in 1968 to control soaring federal payouts for natural disasters. Communities that participated agreed to regulate development; in return, residents living in flood-prone areas qualified for insurance underwritten and subsidized by the federal government. Nearly 22,000 communities have joined the program, and the government now backs about 5.6 million policies. Twenty percent of the holders of those policies pay subsidized premiums that are significantly below risk-based rates. continues on New York Times.

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