Repeat flood claims strain federal insurance
I think New Orleans has a lot of architectural character. I should know: I walked down Bourbon Street at Disneyland a few years ago after riding Pirates of the Carribean.
Seriously though, I think that someone has to tell the people from the Big Easy Wading Pool that unless they want to become the next Atlantis, they need to rebuild somewhere else. I am a little miffed that the taxes I pay might be going to help these waterlogged squatters rebuild in Hurricane Central.
The National Flood Insurance Program was established by Congress in 1968 to cover property owners who build in flood-prone areas, which are considered too great a risk by private insurers. It followed years of devastating floods and political debate over whether the government should step in to offer insurance.
Nearly from its inception, the program has struggled to pay all its claims. It collects $2 billion in annual premiums but has no reserves, heavily subsidizes some of its riskiest customers and relies on the Treasury to bail it out when losses exceed income. Losses this year from Katrina and Hurricane Rita alone could top $10 billion, experts say, forcing the program to borrow billions from taxpayers with no guarantee of repayment.
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