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Insurance, every kind, is the biggest scam since religion was invented. It should be a socialised utility paid for by the taxes already being sucked from our veins instead of funding endless wars all over the world.
A counterargument is that people in places where we suffer few natural disasters shouldn't have to subsidize people that choose to live in places like Florida that suffer frequent disasters.
If the government becomes responsible for the bills to rebuild from disaster, then the government should have the ability to tell people they can't live somewhere that is going to flood every 10 years. And I imagine most people don't want that.
The free market solution to disincentivize people from living in places that increasingly suffer regular disasters is for it to become increasingly expensive to live there. Insurance prices skyrocketing accomplishes that, and if someone can't afford the insurance then they should cash out and move somewhere where they can afford to live.
But really, the problems in Florida are more about insurance fraud and a state government disinterested in doing anything about it. Maybe this will put pressure on the populace to forget culture wars and vote for people that will fix their problems. Ha!
It's funny how fans of the free market assume that anyone can just pick up and leave, ignoring how godawful expensive that act is in itself. What about family and friend ties? Do you even realize how difficult it is to move across state lines? Your entire premise is so absolutely separated from reality.