This story contains the fascinating information that the cost of homeowners insurance, which covers wind damage from hurricanes, is taking a big jump in South Carolina while federal flood insurance is rising just 1 percent a year. Most flood insurance is actually underwritten by insurers (so-called Write Your Own insurance), and is federal only in the sense the federal government sets rates depending on elevation and otherwise highly regulates the market. Flood insurance is therefore an exception to the normal practice in which states regulate insurance, not the federal government.
Increased overall rates aren’t the worst of it: homeowners will also have to pay a big deductible on the percentage of wind damage. I don’t know for sure, but I suspect that, because Write Your Own companies are largely the same as the companies who provide homeowners insurance, the temptation is to slide around the restrictions in the federal market by decreasing risk in the private market.