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'Moral Hazard' Inherent In The National Flood Insurance Program, Scholar Says

The top of a fire hydrant sticks out of floodwaters in front of a home on Sept. 7, 2017, in Richwood, Texas, in the aftermath of Harvey. (Justin Sullivan/Getty Images)
The top of a fire hydrant sticks out of floodwaters in front of a home on Sept. 7, 2017, in Richwood, Texas, in the aftermath of Harvey. (Justin Sullivan/Getty Images)

The National Flood Insurance Program expires in December. Lawmakers want to make changes to the program, but it will be politically difficult.

Flood policy analyst Logan Strother (@LoganRStrother) joins Here & Now‘s Robin Young to discuss the challenges facing the program, including the small percentage of policy holders whose properties are repeatedly flooded and bailed out by insurance payouts.

Strother describes it as “a classic moral hazard, where people are shielded from the consequences of their actions and taxpayers pick up the burden.”

Copyright 2021 NPR. To see more, visit https://www.npr.org.

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