From the Tampa Bay Times:

Christian Cámara, director of the free market R Street Institute in Florida, said subsidized flood insurance has exacerbated the coastal population crunch, too.

“When you have subsidized insurance rates, especially in the high-risk areas, it encourages irresponsible and risky development,” he said.

Cámara said Citizens Property Insurance, Florida’s insurer of last resort when disaster strikes, has bolstered its coffers during the decadelong hurricane drought. Part of that leveling out, though, is the result of Citizens dishing off customers to small and unproven insurers.

If a hurricane struck today, Cámara said, Citizens would likely cover all claims, but be depleted for the next storm. Longtime residents need only remember the four hurricanes of 2004 to be worried.

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