Federal and some state insurance programs are out of control. A new study finds that Florida’s biggest homeowner’s insurer – state-run Citizens Property Insurance Corporation (Citizens) – has been disproportionately subsidizing rich coastal homeowners, compared to other homeowners in the state. The statistical study, conducted by professors at the University of Chicago and University of Michigan, found a highly significant positive correlation between homeowner wealth and the size of the insurance subsidy. The study also found that wealthier homeowners were disproportionately benefitting from the National Flood Insurance Plan (NFIP). Essentially, both state and federal programs are operating like “Robin Hood in reverse.”
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