Abstract
Insuring flood-prone properties is a complex insurance problem. Attempts by the U.S. federal government to step in and correct perceived private market failures have often exacerbated the problem by artificially subsidizing building and rebuilding activity in low-lying areas. This article describes the fundamental problems inherent in the design of the National Flood Insurance Program (NFIP) by analyzing the program through the lens of the insurance concepts of moral hazard and adverse selection. It also provides a comparative view of flood insurance schemes globally, and suggests possible reforms.
Recommended Citation
Kevin Freudenburg,
Rising Tides, Rising Premiums,
102 Neb. L. Rev. 665
(2023)
Available at: https://digitalcommons.unl.edu/nlr/vol102/iss3/6