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Disaster insurance: Should it be mandatory?


Friday, September 8, 2017

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Cleanup after Hurricane Harvey in Houston.Griselda Perez looks out from behind a wall of flood-damaged dGriselda Perez looks out from behind a wall of flood-damaged debris as the family cleans out their flooded home following Hurricane Harvey in Houston (Gregory Bull / AP)

Kelly Cunningham, National University System - YES: Mandating insurance provides an incentive for efficient risk-mitigating measures to be implemented before disaster strikes. Consensual pooling of risk is an important element of a free society. The risks of building and living in an area should be calculated with the costs of living there. If, for example, someone chooses to buy a new TV rather than purchase homeowners insurance, government funds should not be spent to buy a new house if it burns down.