The insurance companies that take a bath after each serious hurricane now want Uncle Sam to "re insure" them. When an insurance company is unsure of the odds of Katrina sized losses, they purchase an agreement with very wealthy people. In return for steady monthly payments the wealthy re-insurers promise to pay off in the event of major disasters. Since the Hurricane Andrew, 9/11 and Katrina losses, private re insurance policies have become very expensive. Now the homeowner's insurance companies and the state of Florida want Uncle Sam to re insure them. Good old generous Uncle Sam will offer lower rates, which will cut the home owner's insurance rates in Florida.
Why Florida? That's the state that gets hit regularly by hurricanes. Up here in New Hampshire, we don't have hurricanes, and our home owners insurance is cheaper 'cause the insurers know they won't have to pay off a Katrina sized disaster. Florida home owners pay more because the insurer's know they will have to pay hurricane claims sooner or later. Now the insurance people and the Florida people want my tax dollars to make it cheaper to live in Florida. The federal "re insurance" will be cheaper than private "re insurance" only because Uncle can pay off with tax money.
It's nice to live in Florida ocean front house. No doubt about it. But, it's riskier than most other places in the country. Let those that enjoy the ocean front homes pay for the risk. Why should taxpayers all over the country cough up money to subsidize Florida ocean front property?