Magazine August 16, 2010, Issue

Letters

Residents use a boat to ferry supplies down a flooded street to their homes cut off by floodwaters in Westerly, R.I., April 1, 2010. (Brian Snyder/Reuters)

Acceptable Risk?

In his article “Preferred Risk” (July 5), Iain Murray states that “the National Flood Insurance Program (NFIP), which encourages building in high-risk areas, [exposes] taxpayers to huge liabilities.” I disagree.

While it may seem that offering people flood insurance will encourage them to build in areas that are subject to flooding, just as having collision coverage encourages reckless driving, the NFIP is actually set up to discourage development in flood-prone areas. And while the NFIP ran into the red after Katrina, it is supposed to remain solvent. Whenever NFIP is solvent, people with flood insurance are paying the full cost

Members of the National Review editorial and operational teams are included under the umbrella “NR Staff.”

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