Quote:
Originally Posted by Shawn
You have 100+ year old billion dollar insurance conglomerates, whose only functions are to make institutional investors money and who have been damn good at doing so for a century and counting, refusing to insure coastal properties in places like Florida. These companies, who are the absolute best at predicting long-term risk trends, have decided that the likelihood of coastal flooding is now so high, it is no longer reasonable in a fiduciary sense to insure against. Because it would lose them money.
That is all you need to know to understand that this is not just a case of increased media cycle exposure rates. When the Progressives, Allstates, and Liberty Mutuals (and the Pentagon, for that matter) say "this is getting serious", it's serious.
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The National Flood Insurance Program is, IMO, the culprit. Banks would never make loans for properties that could not be insured, which would put a stop to almost all home construction in vulnerable areas. But the federal government stepped in to insure where the private market won't, which is probably led to people building/buying home in places where houses should not be built.