Insurance Realities
This MSNBC article, Homeowners at odd with their insurers, shows why the government has to get involved in what should be a private sector problem.
The storm surge from Lake Pontchartrain, whipped up by Katrina, put a neighbor’s hot tub and boat in Warren Willoz’s back yard. He hopes his $150,000 flood policy covers the damage done to his $275,000 house. But already there are issues.
“They said they’ll only cover the bottom cabinets but not the top,” says Willoz, “because the water didn’t get up high enough to damage the top.”
Flood insurance is a government program, because the private sector refuses to offer the protection. Corporations, which the Founding Fathers suspected of being criminal enterprises, are predicated on reducing risks. Today insurance companies don’t want to insure anyone who might file a claim. The government is stuck picking up the slack, because the corporate private sector doesn’t want to work for its money.
