Most of flood insurance revenue is not going to pay claims - al.com

Most of flood insurance revenue is not going to pay claims - al.com: "WASHINGTON — Across the country, federal flood insurance policyholders ponied up more than $3 billion in premiums to protect their homes and businesses in the last fiscal year. Less than half of that money was set aside to pay claims for actual flood losses, according to government figures.

Instead, the Federal Emergency Management Agency spent almost $1.5 billion to cover overhead in two areas: interest on the program's debt to the federal treasury, and compensation to the insurance companies that largely run the program day to day. Other costs included taxes and grants.

About $1.4 billion went for claims, reserves and adjustment expenses, according to figures supplied by FEMA at the Press-Register's request."