Flood insurance in the U.S. is basically a government affair, which means it isn’t really run like a business. That is, taxpayers backstop it, and insurance plans have not been priced according to risk.

In 2012, Congress passed a reform that would try to limit taxpayer exposure by pricing flood insurance plans according to risk. That is, if you build a house somewhere that is very susceptible to flooding, you will pay higher premiums than a house that is less susceptible to flooding.