Flood Insurance for All

Dickie Scruggs wants to change the terms of home insurance policies ex-post so that hurricane victims get more money.

As I see it, there are only two policy options here that ensure home and flood insurance will be available in Mississippi in the future: 1a) Require that insurance companies pay flood damages even without flood insurance, AND 1b) require that every single policy-holder pay back-dated flood insurance premia, from the time they started their current policies, OR 2) enforce the terms of the contracts as originally written.

I personally would go with 2, however I can see insurance companies going for a version of 1 that doesn't sound so harsh. Requiring that everyone have flood insurance (and/or pay for backdated coverage) is an expensive and unnecessary idea, but if one wants big insurance company payouts today, it is the only policy consistent with the long-term public interest of making flood insurance available to those who want it. Of course, it's a terribly complicated idea, but that won't stop officials from making such a drastic institutional change almost unavoidable.


Powered by Movable Type 5.02

About this Entry

This page contains a single entry by Kevin published on September 13, 2005 8:44 AM.

Qual & Other Stuff was the previous entry in this blog.

Prices at 4600 is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.