Mandatory Disaster Insurance

Should disaster insurance be mandatory?
Should disaster insurance be mandatory?

New rules under the National Flood Insurance Program (NFIP) are requiring some residents and business to purchase expensive flood insurance policies. The thinking is that being in a high-risk flood plain is too dangerous to not carry specialized disaster insurance.

As covered in a previous article about flood insurance, the NFIP had to undergo extensive reform because of the volume of claims recently, most notably Superstorm Sandy. Increasing the pool of high-risk insurance holders could prevent the NFIP from going bankrupt.

But should this kind of disaster insurance be a requirement? And does it set a precedent for other disaster-prone areas? Areas frequented by earthquakes, wildfires, tornadoes, hurricanes and more could fall under the thumb of programs similar to the NFIP’s forced disaster insurance.

Living Ready asked readers on its Facebook page that very question:

Should all homeowners and businesses be required to purchase extra insurance if they are located in an area frequented by natural disasters?

Should Disaster Insurance be Mandatory?

“I don’t care if they decide to insure themselves or not, but if they don’t, they should not be able to make a claim on the taxpayers to make up for it.” – Matt Pierce

“They would have to cover the whole country if they did a regional thing. For specific threats, like living in a specific flood plain that floods often, or living on the side of a volcano, yes. Choosing to live in OK, thus you might get hit by a tornado? nope.” – Jane MomwithaPrep

“No one should have to carry any insurance that they don’t want, but they shouldn’t expect, or receive, a government bailout if a disaster strikes them.” – Paul Kendall

“If you insist on building on an unstable cliff, yes. If you live below sea level, yes. If your house is in the middle of tornado alley, yes. Otherwise, everyone has to help pick up the cost of money lost by insurance companies when the odds catch up. If you drive every day in Dallas your car insurance is more than if you drive in the countryside for the same reason.” – Steven White

“Where is it safe to live that no ‘Natural Disasters’ happen? Are we talking about only floods or Waves, Tornados, hurricanes, Fires, snow storms, earth quakes, Tsunami’s, pick your poison? I live on the Gulf Coast and if you have to rebuild you have to meet new codes! It’s not the same thing over and over!!” – Damon Stelly

“I live on Long Island IN Newyorkistan, all the insurance these people paid still hasn’t helped them a year after SuperStorm Sandy. Ask the people of Katrina if they got paid as well. All the monies supposedly paid went right into government coffers for emergency management. Disgusts me as firefighter/EMT.” – Davy Poggi

“Hmmmmm, mandatory insurance, with a bit of grease for Uncle Sam’s palm, you know, because what they mandate will be better than the junk you have now. Where have I heard this whole mandatory insurance bit before? It’s a total win for the government, and a lose for all of us.” – W Toney Nikolatsopoulos

“No, but neither should they receive ANY tax dollars to rebuild when their house gets blown away. You take your chances, and you deal with the consequences.” – Carrie Bartkowiak

What Do You Think About Mandatory Disaster Insurance?

Should disaster insurance be mandatory? Leave your comment below or go the Living Ready Facebook page to join the conversation.


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