R.J. Lehmann on Florida and flood insurance
This war chest means that FEMA will likely not have to go to Congress for more funding to pay out claims, R.J. Lehmann, a senior fellow at the International Center for Law and Economics, told Grid. “It is very unlikely Ian will pass $18 billion in claims, which would save NFIP from having to go to Congress,” Lehmann said.
But for the overall market, “the Florida insurance story is that our market was already collapsing,” Lehmann said.
…“At some point, we will have to bite the bullet,” Lehmann said. “That exposure of Florida as a low-lying peninsula means you have to charge much more than people can afford, and you will need public policy that will involve buying people out and saying ‘You can’t live here anymore.’”