Is the MS AG Getting Nervous?

This article from Consumer Affairs.com suggests that Mississippi’s AG Hood is trying a new strategy.  He is asking the President to authorize flood insurance “payments” to those who did not have flood cover prior to Katrina. 

Everyone wants to help the disaster victims, but we need to consider the effect of ex post payments on the Federal Flood Insurance program.  A bail out will kill the program as people will wait for the federal intervention and never purchase flood insurance.  Congress will never be able to make a credible commitment to not assist with disaster relief. This is exactly the worst possible signal to send to homeowners in higher risk areas.  Don’t prepare for the future: We’ll subsidize your risk taking!

Comments

[DougSimpson]

So, the folks who *did* buy flood insurance will feel like idiots for paying premiums for years, when they see their neighbors who didn't pay the premiums gettting their flood damage paid anyway. Not the right message at all ... unless you are running for Governor of Mississippi, perhaps.

Of course, this is how FEMA has worked for decades.

Doug Simpson

[Martin]

I feel like an idiot for buying uninsured motorists coverage, disability insurance, dental insurance (for sure!), and life insurance!