This story, from NBC News and The Consumerist, really ought to get you steamed. Homeowners Associations on prime beachfront properties have figured out a way to make the taxpayers pay for their huge cost of flood insurance. It sounds like fiction, but it’s not.
Zillionaires who own oceanfront properties that get destroyed by hurricanes every couple of years theoretically should be paying a fortune for federal flood insurance. That’s the law.
But guess who figured out a way to make YOU pay for their flood insurance?
Yep. The zillionaires. They got the Federal Emergency Management Agency (FEMA) to declare their constantly flooded properties as Low Risk/No Flood Zones. That means about a 95% reduction in their flood insurance costs.
So, every time you see on the news that a ritzy beachfront condo development has been destroyed by a hurricane, just remember that last check you wrote to the IRS. A good portion of it is paying for the reconstruction of the homes of zillionaires.