Coastal Disaster Insurance in the Era of Global Warming: The Case for Relying on the Private Market
Georgetown Environmental Law & Policy Institute, 2007
61 Pages Posted: 24 Oct 2010 Last revised: 28 Apr 2013
Date Written: 2007
Recent hurricanes and other severe coastal weather have caused substantial property damage, which, in turn, has increased insurance rates and made insurance difficult to obtain in some locales. This Report suggests that subsidizing the cost of insurance by creating a federal wind insurance program is the wrong way to ensure that property owners can find insurance because subsidies will only increase the intensity of development and, as a result, future losses. Instead, the Report suggests that allowing insurance companies to establish market rate premiums will provide the right price signals to prevent excess development along the coast.
Keywords: Coastal Development, Property Insurance, Global Warming
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