Flooded with good intentions - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
January 12, 2024 Newswires
Share
Share
Post
Email

Flooded with good intentions

Abbeville Meridional (LA)

Sen. John Kennedy is upset because Sen. Rand Paul wants to limit federal flood insurance.

But Paul is right. In my new video, Paul says, "(It) shouldn't be for rich people."

That should be obvious. Actually, federal flood insurance shouldn't be for anyone. Government has no business offering it. That's a job for the insurance business.

Of course, when actual insurance businesses, with their own money on the line, checked out what some people wanted them to insure, they said, "Heck no! If you build in a dangerous place, risk your own money!"

Politically connected homeowners who own property on the edges of rivers and oceans didn't like that. They whined to congressmen, crying, "We can't get insurance! Do something!"

Craven politicians obliged. Bureaucrats at the Federal Emergency Management Agency even claim they have to issue government insurance because, "There weren't many affordable options for private flood insurance, especially for people living in high-risk places."

But that's the point! A valuable function of private insurance is to warn people away from high risk places.

But instead of heeding that warning, politicians said, "Don't worry. Since private companies won't insure you, we will."

Of course, the politicians claimed they'd price the insurance properly so they wouldn't lose taxpayer money.

"We must (do) everything we can to protect taxpayer dollars." said Colorado Sen. Wayne Allard.

But Paul points out, "Like most things in government, they continue to lose money."

So far, the government lost $36 billion of your money.

Yet they still insure people who can't get private insurance.

Kennedy thinks that's fine. "The first role of government is to protect people and property," he shouts from the Senate floor. "I thought this is what libertarians believe."

No, Senator, we believe government should protect our right to life, liberty and the pursuit of happiness, and then leave us mostly alone.

By insuring risky property, Paul points out, "You're actually doing the opposite of what you would think government would want to do; you're promoting bad behavior."

Exactly.

Years ago, Federal Flood Insurance encouraged my bad behavior.

I wanted to build a house on a beach. When I asked my father to help with the mortgage, he said, "No! Are you crazy? It's on the edge of an ocean!"

Dad was right. It was a dumb place to build. But I built anyway, because Federal flood insurance, idiotically, guaranteed that I wouldn't lose money.

I enjoyed my house for ten years, but then, as predicted, it washed away.

It was an upsetting loss, but thanks to Uncle Sam, I didn't lose a penny.

I'm grateful. But it's wrong that you were forced to pay for my beach house.

Paul is right to say that people with second homes "should not get insurance through the government."

Actually, no one should get flood insurance through the government, but Paul fears that his irresponsible colleagues won't approve killing the handout altogether. Instead, he just proposes limiting the handout to primary residences.

It would be a start.

But even this slight reform is too much for Kennedy, who says, "If you earn enough to buy a second home, we shouldn't discourage that."

No, we shouldn't.

But we shouldn't subsidize it with taxpayer money!

Doesn't he get the difference?

Federal flood insurance is like buying drunk drivers new cars.

Adding to the idiocy, there is no limit on how many times the government will give away your money.

"One home in Virginia," says Paul, "they've rebuilt the house 41 times!"

I took your money once. I apologize for taking it, but when my government offers me a handout, I feel stupid not taking it.

Let's get rid of federal flood insurance and all subsidies that encourage people to do foolish things.

Older

The Aflac WorkForces Report Reveals Workforce Retention on the Line As Employers Battle Employee Burnout

Newer

These Miami cities love Trump — and lead the U.S. in Obamacare enrollment. Here’s why [Miami Herald]

Advisor News

  • When new investment trends emerge, Gen Z is most likely generation to be first in
  • Could ‘plain English’ become an advisor’s secret weapon?
  • IRI urges Senate action on 403(b) parity legislation
  • Three estate planning ideas to protect your clients and their wealth
  • What advisors must know about accessible client documents
More Advisor News

Annuity News

  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
  • Wink: Annuity sales post strong Q2, led by MYGAs and structured products
  • Legacy Marketing Group partners with Malibu Life USA for annuity launch
More Annuity News

Health/Employee Benefits News

  • $4B at stake in Medicaid change
  • ATTORNEY GENERAL TONG JOINS COALITION CHALLENGING TRUMP ADMINISTRATION'S LATEST ATTACK ON HEALTHCARE FOR TRANSGENDER YOUTH
  • ATTORNEY GENERAL TONG JOINS LAWSUIT CHALLENGING EFFORT TO EXPAND CATASTROPHIC HEALTH INSURANCE PLANS AND AGAIN UNDERMINE ACA PROTECTIONS
  • ATTORNEY GENERAL TONG URGES CONNECTICUT INSURANCE DEPARTMENT TO REJECT DOUBLE-DIGIT HEALTH INSURANCE RATE HIKE REQUESTS
  • Some WNY health insurance rates will stay flat. Others will rise 13.5%
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • TDCI reminds consumers to focus on future during Life Insurance Awareness Month
  • TDCI reminds consumers to focus on the future during Life Insurance Awareness Month
  • AM Best Affirms Credit Ratings of Zurich Insurance Group Ltd and Its Main Rated Subsidiaries
  • Best’s Market Segment Report: AM Best Maintains Stable Outlook on China’s Non-Life Insurance Segment
  • Understanding Nonequity Split-Dollar
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.