The federal government is horrid at “insurance”. Let’s take so-called “flood insurance” that is handled via the National Flood Insurance Program under FEMA. IT IS NOT INSURANCE!
So-called “Flood Insurance sold by the feds is nothing more than a contract with the federal government that says that the federal government will pay in the event that a structure floods. The premiums are not based on risk. The premiums are way too low in many cases in comparison to the risk. Because of this you have stupidity like the houses built around New Orleans that were in a “low risk” flood zone with cheap premiums when the properties were really way below sea level. And protected by pumps 24/7 to stay dry even on rainy days.
Because the feds have promoted cheap “flood insurance” in areas that were sure to flood we end up with development in those areas. Once these properties flood as they were sure to at some point the NFIP/FEMA program runs out of money. It has done so numerous times. When this happens Congress funds the shortfall (you can research all of this) from where? From the United States Treasury of course!
No regular sane commercial insurer would write flood insurance. It is a loser. But the feds do through this BOGUS program and since as I mention above the shorfall comes out of the Treasury the program is SOCIALISM! Because a guy sitting on top of a desert moountaintop who pays federal income tax SUBSIDIZES the “claims” paid by the FEMA program.
What a ripoff! Every US taxpayer payd for the “flood insurance” while NEVER getting a penny out of the program. Dumb, eh?
TOTALLY - I’ve also read enough about that program, agree with everything - except that I do think private companies would fill the void - but they would charge market rates, which would price out most people, and therefore floods wouldn’t cause as much property damage. It’s like magic.
There are probably 10s of billions of dollars of national debt because of this program and it’s not like we don’t have places that don’t flood - to build houses.