REALITY: Government proposals that transfer risk from insurers to taxpayers won’t reduce the risk or cost, but will diminish the private market and encourage further development in hazardous areas leading to increased risk and cost in the future.

• According to theFederal Emergency Management Agency, FEMA, only about 49 percent of single-family homes in special flood hazard areas nationwide are covered by NFIP.

After Katrina, the number of flood insurance policies sold in the Gulf States did increase by 21.6 percent.  Unfortunately, the number of flood policies not renewed since Katrina is surprisingly high – 23% in Alabama, 32% in Florida, 17% in Louisiana, 19% in Mississippi and 25% in Texas.