Posted On: January 29, 2007, 2:44 pm CST

Posted By: Jeff

I hear a lot of concern about paying for people that live in FL or other area prone to natural disaster. If we did have a national disaster / catastrophe fund, it would make sense to charge somewhat on exposure. For example, you maybe wouldn't pay as much for flood coverage in Muncie, IN as you would in Miami, FL.

With regard to "paying for someone else". We all pay for everyone else. Let me give an example. Say you live in Indiana, and you are getting federal funds for highway work, schools, etc, that money doesn't only come from federal taxes collected in Indiana. California and New York for example pay more money into the federal tax system than they receive. Indiana receives more than is contributes.

I don't think this means that New Yorkers should be upset with Indiana, it just works that way sometimes. There are state's rights and I think most certainly have a loyalty to their states, but we are one nation. I think all homeowners should be responsible to carry insurance for ALL perils regardless of region. And if you live in a state like mine (AZ) that doesn't really have natural disasters, take solace in the fact that you'll probably never have to try to rebuild your life after a flood, earthquake, etc.