I was not picked for a jury this week, but reporting for jury duty was fascinating. I will write about it soon, probably on an upcoming Insurance Claims and Bad Faith blog post.
Flood insurance has always provided coverage to people who live and work in areas at risk to flood damage. The risk of flood damage has increased a lot in recent years. Corresponding to the increased risk of flood damage, the premiums for flood insurance -- and the taxpayer-funded subsidies for flood insurance premiums -- have increased a lot too.
By some estimates, there is $1.1 Trillion worth of risk from flood damage to coastal properties at this time. And that is just for the East Coast. And based on current tides and water levels. Water levels are rising everywhere including on the East Coast.
So with more money at stake more attention is being paid to the so-called "moral hazard" that has always been a part of the flood insurance scheme. People who live in dry areas subsidize the choices of people who choose to live in areas that are now more and more frequently under water. Some say that they prefer the policy choice of not subsidizing those choices at all. See generally Brooke Jarvis, "When Rising Seas Transform Risk Into Certainty / Along Parts of the East Coast, the Entire System of Insuring Coastal Property is Beginning to Break Down" (New York Times Magazine Online, posted on April 18, 2017), also accessible although subscription may be required at https://www.nytimes.com/2017/04/18/magazine/when-rising-seas-transform-risk-into-certainty.html?hpw&rref=magazine&action=click&pgtype=Homepage&module=well-region®ion=bottom-well&WT.nav=bottom-well.
That would be a sea change in policy, no pun intended.
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