[petcat]

Home owners in low-risk regions like upstate NY actually have to subsidize the solvency of insurers offering coverage in extreme-risk regions like Florida and the south.

Everyone's home insurance premiums should be lower than they actually are. Except they're not, because we have to pay to offset the cost of all the people rebuilding their houses on the Florida coast every few years.

[triceratops]

I mean that's kind of a strong claim. Premiums are priced by risk. If insurees of one company in Florida are getting more than they pay in aggregate, then other insurance companies which correctly price the risk in NY will take all their customers.

This only holds for government insurance programs. And in that case all taxpayers are subsidizing them.

[ponector]

And then there is a devastating hurricane, billions to be paid by insurers. Who you think give them money to pay?

The answer is: everyone who uses home insurance all over the world. They will keep insurance companies afloat while paing billions for the damage.

[ethbr1]

> Who you think give [insurers] money to pay?

Now? The NFIP and FAIR. Which is to say all citizens.