Flood insurance can take two broad forms.  Market based insurance models are typically individualistic and risk-sensitive  - forms of mutual insurance where individuals payment into the risk pool is proportional to their level of risk, as with private motor or travel insurance. These contrast with solidaristic, risk-insensitive models or ‘forms of insurance where those bearing lower levels of risk contribute to the support of those bearing higher risk, as with the UK National Health Service.

O’Neill, J. and O’Neill, M. (2011) Social justice and the future of flood insurance, Joseph Rowntree Foundation.