Quote:
Originally Posted by SebC
The problem with that is that if you don't insure them, then you end up bailing them out without recovering your costs from them. Telling people "too bad, you chose to live on a floodplain" isn't politically viable, but telling them "we're going to create an insurance program that you can use" could be.
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But the insurance program cannot pay for itself, which is the exact reason insurance companies don't provide it. This flood might cost $1,000 per house in Alberta if everyone is 'bailed' out. In other words, if only those that needed this insurance bought into it, it would cost thousands per house. Probably around 20,000 to 100,000 per house. Who knows when the next flood is going to happen.
I think we are all better off if these people didn't have developed basements.