Posted On: January 30, 2007, 12:40 pm CST

Posted By: Jeff

Pipe,

That's a fair enough analysis. I'm sure that we're not looking at an actuarial sound device here. And this very well is a way for people in disaster prone areas to supplement their insurance needs with the help of the rest of us.

But, who cares. When you put the backing of the whole of the US behind a project the individual contribution is almost negliable. I seriously doubt you would need to charge a substantial (and by that I mean not over $ 50 to $ 100 / homeowner) amount to cover the costs of the program. Probably even less than that.

Certainly, other states would also benefit from the CAT funds (I believe Hoosier pointed out the CAT damage in IN last year that led the nation). Also, I wouldn't only use this fund. I think there needs to be strict code guidelines in wind areas that make homes less susceptible to wind damage. And of course, they would need to pay more (even if not accurarily adequate) for their coverage. In addition, to supplement the fund in states more prone, maybe tack on a 1/2% sales tax.

There are many options other than pricing people out of the insurance market to provide affordable coverage to Floridians. I think it is very hard to think to yourself that you're paying for someone else to live, but as I pointed out in my last post, it's not only a one way street.