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Joined 10 months ago
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Cake day: December 7th, 2023

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  • My insurance company has determined that my house would cost about $450k to completely rebuild in the event of a total loss. Thankfully in the Northeast the risk of my house being destroyed is low, so they charge me $1,100 annually. Even with a few houses in my area being destroyed by fire, flood, or extreme weather, they still make enough to build up their reserves, pay their employees, and kick back some to the investors.

    How much would that company need to charge in Florida so they could still pay to fix the houses and pay everybody that works for them? Definitely not $1,100/yr because replacing just a single broken window costs $1,100.

    Now think about if the Federal government began covering Florida. They would have the same issue as private insurers - there is no amount they can charge that will not deplete their funds faster than they take in premiums.