Today in perverse incentives, coastal property owners are incentivized by their insurance to let their homes fall into the sea, rather than proactively tearing them down.
McDaniel says he can’t afford to move the house, which would be his first choice, or to demolish it. The house has a flood insurance policy that will pay out $250,000 if it collapses, plus up to $100,000 for lost belongings.
“If it’s teetering, you’ve got to sit and wait for it to fall in the ocean,” he says.
That’s bad for pretty much everyone and everything.
