They don't need to do it this way. Just legislate insurance companies from being allowed to insure homes located in flood planes and suddenly, those homes owners would be begging the feds to buy them out as their property values plummet.
-Will (Dragonfly)
Flood insurance: A complete guide
....Flood damage is not covered by standard home insurance policies, so you need to buy a separate flood insurance policy. They are primarily sold through the National Flood Insurance Program (NIFP), though you can also buy it from private insurers. Unlike most other types of insurance, flood insurance policy rates don't vary between insurers.....
The NFIP lets you insure your house for up to $250,000 and your personal property (contents) for up to $100,000. If you rent, you can buy up to $100,000 in coverage for your belongings. For non-residential property, you can buy up to $500,000 of coverage for the building and contents....
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Fixing the National Flood Insurance Program
.....Despite repeated
bailouts by Congress, the NFIP continues to lose an estimated
$1.4 billion each year. The program’s debt to the U.S. Treasury now
exceeds $20 billion, which no one expects it to ever pay back.
But the NFIP’s problems are largely self-inflicted.
The program’s fundamental flaw is that the premiums homeowners pay
rarely reflect covered risk. Underpricing policies encourages over-development in areas vulnerable to flooding, while over-pricing deters property owners from purchasing coverage at all. In fact, recent estimates suggest that between 60 and 99 percent of Americans affected by recent disasters
did not have flood insurance.
The NFIP recently announced that it plans to
upgrade its rating methodology to more closely align premiums with risk, but it remains to be seen whether these measures will go far enough to stabilize its finances......
