Flood Insurance Reform Needs Less Government

Published July 11, 2010

U.S. Rep. Candice Miller’s criticism of the National Flood Insurance Program’s many flaws is timely and justified (“Reform flood insurance or pull out of it,” July 7), and the Times Herald’s proposed solutions make a lot of sense.

A better-run, more responsible flood insurance program that encouraged private involvement in flood insurance and promoted safe building would benefit Michiganders and everyone else in the country. A regional flood pool, as you suggest, could help solve some of the program’s ills.

If any pool is created, however, it should also avoid the entirely governmental financing mechanisms of the current program and instead ask private companies to take some or all of the responsibility for providing flood insurance.

Midwest Director
Center on Finance, Insurance, and Real Estate
The Heartland Institute