O'Reilly logo

Principles of Risk Management and Insurance, 13th Edition by Michael McNamara, George E. Rejda

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Government Property Insurance Programs

Government insurance programs are often necessary because certain perils are difficult to insure privately, and coverage may not be available at affordable premiums from private insurers. Two government property insurance programs merit discussion here:

  • National Flood Insurance Program

  • FAIR plans

National Flood Insurance Program

Buildings in flood plains are difficult to insure by private insurers because the ideal requirements of an insurable risk discussed in Chapter 2 are not easily met. The exposure units in flood plains are not independent of each other, and the potential for a catastrophic loss is present. Also, adverse selection is a problem because owners of property who believe their property is ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required