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Wednesday, June 18, 2008
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How Many Times Should We Pay for a Flood?

The New York Times has an article about one of the Iowa towns that has been dealing with severe flooding this year:

This is not the first time this tiny city in a valley of rolling hills 70 miles northeast of Des Moines has been mostly under water, as it is now, a soaking casualty of the swollen Iowa River, the Otter Creek and this endlessly wet spring.

In 1993, when floodwaters inundated Chelsea, population 297, and thousands of other communities across the Midwest, killing 50 people and damaging 50,000 homes in nine states, the people here, unlike those in most places, decided to think long and hard about moving the whole community to higher ground.
...
But the reality of the move proved much more contentious than the idea, and just a few homeowners ended up taking advantage of the federal aid available for relocation and buyouts.

So we offered to buy up their homes, and move them somewhere else.  And instead, we helped pay to rebuild their homes.  Why?  For how many of those home owners is this their second or third major flood?  At some point in time, when does our community stop being responsible for paying for your bad mistakes?  I can understand once, but twice?  Three times?

When we helped rebuild instead of move in 1993, should we have also said... the next one is on you?

# Posted at 4:15 PM by Nick  |  Comment Feed Link 4 Comments  |  No Trackbacks

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Wednesday, June 18, 2008 4:30:20 PM (Central Daylight Time, UTC-05:00)
The first time, I can let it slide if you want to take on the risk of staying in an area that experienced severe flooding. I can buy the argument that it was a one-time thing, a freak storm, we'll improve the dike/dam/levy/whatever flood control system to make a repeat of this situation highly unlikely. However, if, after a second flood, it becomes clear that this could become a routine thing, if you turn down an offer to be moved to higher ground, you're pretty much on your own at that point. If you're going to stay, get flood insurance, because you'll need it. Except, of course, if the National Flood Insurance Program says you don't live on a flood plain...
Thursday, June 19, 2008 9:01:05 AM (Central Daylight Time, UTC-05:00)
Insurance companies should simply refuse to insure anything in certain areas. If there is a high probability that your property is going to be destroyed by a disaster why should you be able to insure it?
3rd Way
Thursday, June 19, 2008 9:03:06 AM (Central Daylight Time, UTC-05:00)
Well that one is easy to answer 3rd Way... it's because Insurance Companies DON'T Insure it... the government does. More than that, the government requires by law that if you live in a federally declared flood plain, then you have to buy the insurance.
Friday, June 20, 2008 10:03:07 AM (Central Daylight Time, UTC-05:00)
If you build your house on what is knowingly a flood plain you should bear the loss. See, e.g. New Orleans.
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