Flood Insurance – Who should Pay?

Insurance is, as Orwell called it, a swindle, but at least it is a logical swindle. Insurance rates are calculated on the industry’s view of statistics; the uplift and margin applied to those statistics are the tools of the swindle, but the fundamental premium you pay depends on the figures. If you wish to insure your life you age and the statistical analysis of your longevity will be relevant and if you want to insure your home against losses suffered by flooding then the likelihood of flooding in the place where your home is situate is part of the figuring which sets the price that you pay. If the insurance company, when looking at the statistics tells you that it will not insure your home at any price, then you know that flooding is not merely possible but highly probable. Continue reading