Can the US government run homeowners insurance, since the insurance companies don't want to pay on claims?

Question

Since the federal government pays out billions in disaster relief (DR), why not have property owners pay into them instead of money hungry insurance companies. When you receive money for a loss from DR, taxpayers are kind of paying themselves and the defecit isn't raised as much.

Answer 1

As a matter of fact, they can. It is a matter of personal opinion though. There are two sides. Socialism: when the government controls industry. capitolism: when the government leaves industry alone. The constitution will allow either element under the constitution's elastic clause which states, "Congress shall pass all laws that are necessary and proper." Meaning, laws that are needed can be passed. If companies refuse to pay, the government can take over for the good of the people.

Answer 2

You want the insurance industry to look like VA or Medicare? The US government screws up everything it does. Did you ever have a flood claim with the National Flood Insurance program? It is a federal government program. $1,000 deductible on building. A separate $1,000 deductible on contents. There is no coverage for contents below grade level. No coverage for finished basement below grade level.
They routinely deny claims because there is not much you can do about it. If the wind blows, the NFIP wants the homeowners insurer to pay everything.

If you have a complaint about your insurance company, take it up with your state's insurance department.

Insurance companies pay claims. Maybe not all. Sometimes it takes a while. And sometimes you have to do battle.

Answer 3

Most insurance companies only make money off of the investement they make on the premiums you pay.
They do not make money on premiums enough to pay the claims. Because the Federal Government could not invest those moneys in the stock market (their would be political pressure not to) they would have to charge more or could not afford to pay.

Because of the federal bureaucracy , instead of having an agent working for you, you would have to wait in line to speak to a federal employee who would rather be on his lunch break.

Answer 4

No. The federal government is strictly limited by the Constitution as to what it can and cannot do.

The government has no right to do 90% of what it does. Besides, why would you force others to pay for your insurance?

...and the government can't run anything right anyway, so why would you want it to, unless you're a mooch?