Building again in Natomas is too risky
This is misguided enthusiasm, said Ian Adams, a policy analyst specializing in insurance markets for R Street Institute, a libertarian think tank. “Overhauling the levees makes sense for existing residents, but not as a basis for further development…
…Federal flood insurance data is illuminating. Over the life of a 30-year mortgage, homes in Natomas have a 26 percent chance of flooding. In the free market, insuring a $300,000 home in Natomas with $280,000 in coverage would cost about $21,000 annually. The cost under the federal government’s National Flood Insurance Program is $353 annually – what Adams calls “a massive transfer of risk from a small percentage of homeowners onto the backs of all U.S. taxpayers.”
