I have friends in Miami who are talking about buying off their home loans so they won't have to pay the skyrocketing insurance rates.
What I've done is to insure for far less than the replacement value of the home, and get the highest deductible possible. In my view, the house is not likely to be totaled anyway, althought that does happen.
Meanwhile, I absolutely agree that it is not government's place to regulate prices, or to tell people what they can sell to whom and where. All that smacks of central planning and socialism.
Regulation does have a place in government, but IMO mainly in the enforcement of contracts and honest business practices.
Yep. Similar to healthcare, the model will need to change in order to protect people from catastrophic losses while allowing them to self insure up to a level they can afford. The system already allows this (provided you have equity in your home), and smart people in high risk areas will begin to take advantage of it.