Insurance pays off for private sellers in this country. They profit handsomely while public sector investment goes down a sinkhole. Our government underwrites flood insurance for homeowners but does not profit from the sale of comprehensive homeowners policies. If states sold comprehensive homeowners policies, it would allow government to competitively regulate the insurance industry the way the Post Office regulates the package delivery business.
Coastal states for example, could offer full coverage for all structural damages caused by hurricanes. Currently, many private insurers only pay for wind damage. This puts homeowners in the untenable position of attempting to distinguish between wind damage and water damage in cases where their homes were obviously destroyed by a combination of the two. Private groups would need to match coverage options offered by public groups or risk losing business.
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