<P> According to critics of the program, the government's subsidized insurance plan "encouraged building, and rebuilding, in vulnerable coastal areas and floodplains ." Stephen Ellis, of the group Taxpayers for Common Sense, points to "properties that flooded 17 or 18 times that were still covered under the federal insurance program" without premiums going up . </P> <P> Another criticism is that FEMA doesn't administer all policies, instead outsourcing many policies to private insurance companies . When a disaster occurs, FEMA makes payments to those private insurance companies to offset their costs . However, there is little oversight and few rules as to how the money should be distributed . As a consequence, private insurers have been known to use FEMA payments to hire attorneys that fight policyholders in court . One law firm is estimated to have received US $29 M from FEMA payments to fight Hurricane Sandy claims . </P>

What does the national flood insurance program cover