Question

RECONSIDERING FLOOD INSURANCE

After hurricanes smack coastal cities and towns, shocked residents and businesspeople often call their insurance companies right away. Many find out—too late to do anything about it— that their losses aren’t covered by insurance. Nature can be cruel, and disasters occur with alarming frequency. Floods are more confined and predictable than other disasters, but their scale is sometimes so huge that private insurers have been scared away. That’s why Congress created the National Flood Insurance Program (NFIP) four decades ago.

Since then, the federal government has made flood insurance available to property owners, filling a gap left by private carriers, which generally decline to write the coverage. The program has grown controversial over the years. Critics have argued that it encourages Americans to build on beaches, flood plains, and other sites that shouldn’t be built on—and wouldn’t be if the government wasn’t willing to compensate owners when such homes and vacation spots are washed away.

The insurance can be immensely valuable. Policies under the NFIP will pay up to $250,000 for residential buildings, plus another $100,000 for contents that are lost. It will also pay up to $500,000 for nonresidential buildings and $500,000 for their contents.

The premiums average around $878 a year for $100,000 of coverage—higher in very floodprone areas. That’s very reasonable, considering the risks. Many mortgage lenders require it, at least for property located within a flood-prone area.

One of the largest hurricanes seasons in recent history was in 2017. It created staggering losses and is expected to cost billions to recover. But who pays? Robert Hunter, former head of the federal flood insurance program also sees an interesting question developing among claims adjusters—Who pays for what damage? The federal program uses private insurers and their adjusters to evaluate claims, and “company X may say, ‘I can’t tell if this is flood or wind, so it looks like flood because they pay it and we don’t,’” Hunter said.

Question: what massage in above illustrate to you, and what do you think?

Answer 1

Natural calamity is natural not human made. No one is responsible for the any of the natural calamities. If government is having National Flood Insurance Program in order to deal with damages caused with flood then Govt should also have proper guidelines and regulations to whom that insurance scheme is liable for.

As scale of the flood is sometimes so huge, so in that case insurance should be paid to all those people who didn't resides under flood prone areas. Govt have to restrict strictly to all those people who build on beaches, flood plains, and other sites that shouldn’t be built on. No insurance should be paid to those who are involved in encouraging the flood by any ways.

Government is responsible for everything happen in the country but as being an aware and responsible citizens, citizens also have some responsibilities towards country. So everyone need to contribute equally in the well being of the country in all way.