Groups urge Congress to target flood insurance fix to help needy, not wealthy
Ray Lehmann, of the free market think tank R Street Institute, another SmarterSafer.org member, agreed. “No one should be thrown out of their homes because they can’t afford their coverage but a blanket delay is not necessary,” he said.
Lehmann said the premium subsidies help the rich more than the poor at taxpayers’ expense. “The response that has motivated a push for a delay is based upon some legitimate concerns about affordability but it should be put in some perspective,” he said.
Citing Government Accountability Office (GAO) data, he said 65 percent of the policies with subsidized flood premiums are in counties that are among the country’s richest counties, in the top 30 percent of home values.
By contrast, nine percent of subsidized properties are in counties at the bottom 30 percent of home vales.
The wealthiest counties also file 3.5 times more claims than poorer counties and receive more than $1 billion more in claims payments, according to Lehmann.
“So we think there is reason for means-tested help for some” but the problem is not widespread enough to justify repealing all reforms and continuing to subsidize wealthy homeowners.
Lehmann questioned reports that the flood insurance price hikes are hurting the Florida real estate market, claiming home values and real estate sales are up statewide in the Sunshine State.
