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Informed: Fair point. The problem is that rates are not really set by the market. When one entity (e.g. the bank or government) can mandate that you purchase a product (e.g. flood insurance or health insurance) the rates become artificially distorted. The best example is life insurance. If you buy a policy you pay market rates based upon your mortality. But if a mortgage lender requires that you buy PMI, which is essentially life insurance with the bank as beneficiary, the rates are no longer 'market rates', but rather significantly higher and are not based upon mortatlity. Finally, the bank is the functional owner of many of these properties. It seems to me that the banks would be in a better position to negotiate better premium rates than homeowners as a function of volume.

From: Official: Delayed flood rates not answer

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