Grim reality sets in after the storm
The U.S. flood insurance program remains broken. More than 400,000 homeowners in the Carolinas, Georgia and Virginia have flood insurance, with $106 billion in combined coverage. R.J Lehmann, a flood insurance specialist with the R Street Institute, a Washington-based think tank, told the McClatchy news agency that if 10 percent of those homeowners suffer flood damage, the program could face at least $10 billion in claims.
“This program since 2004 has borrowed $40 billion from taxpayers and has only paid back less than $3 billion of that money,” Lehmann said in the McClatchy story. “That is a direct subsidy from people who are not at risk to people who are at risk.”