The idea behind a National Catastrophic Insurance Fund is designed to cover all sorts of natural disasters throughout the country. The general concept behind any kind of insurance is to spread the costs around so everyone pays a little, and no one pays a lot. While South Florida still reigns as the capital of hurricanes, this year showed that a hurricane can hit anywhere. New York and New Jersey learned quickly when they were blasted by Sandy.
It’s not just hurricanes. Tornadoes, blizzards, fires, hailstorms, wildfires and other unanticipated natural phenomena (avalanches, sinkholes, earthquakes, etc.) can all wreak havoc on your real estate. Money Magazine explored the issue of a federal fund as far back as 2005. Yes, there is always pushback There’s no easy answer to safeguard property. When a real disaster hits, insurance is a great relief. Again, for a real disaster.