Article: On House, 22 Floods: Repeated Claims Drain Federal Insurance Program by Ruth Simon

1. What is the effect of the federal flood insurance program on the incentive to build homes in flood prone areas?

2. Should flood-prone homes be rebuilt on the government's (i.e., taxpayers') dime?

3. What is moral hazard? How does this program illustrate moral hazard or overcome it?

4. What should Congress do about the national flood insurance program?