“By insuring risky property, Paul points out, “You’re actually doing the opposite of what you would think government would want to do; you’re promoting bad behavior.””
…
“Years ago, federal flood insurance encouraged my bad behavior.
I wanted to build a house on a beach. When I asked my father to help with the mortgage, he said, “No! Are you crazy? It’s on the edge of an ocean!”
Dad was right. It was a dumb place to build. But I built anyway, because federal flood insurance, idiotically, guaranteed that I wouldn’t lose money.
I enjoyed my house for ten years, but then, as predicted, it washed away.
It was an upsetting loss, but thanks to Uncle Sam, I didn’t lose a penny.
I’m grateful. But it’s wrong that you were forced to pay for my beach house.”
https://reason.com/2024/01/10/the-feds-shouldnt-subsidize-fancy-risky-beach-houses/