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Once one accepts that economic models and theories are just that models and theories. You come to realize that the term laws can not realistically be applied to economics. All the rules have been made up by man, and therefore are as changeable as the weather.
One of the rules of economics has traditionally been that if something is destroyed then the wealth it represented has also been destroyed and thus the game of insurance evolves. Traditionally insurance doesn't cover the unpredictable, as insurance is an odds game. Therefore acts of nature or god often go uncovered...
One of the many many failures of the Bush administration was Hurricane Katrina and its devastating effects over several states, Millions of people without homes and no way to pay for it. If only we could accept a simple theory that wealth is not per say destructible. Why couldn't the government say that we know it existed and therefore we can replace it. They already do this with cash money, stocks and bonds and other things that occasionally get destroyed, because they represent wealth. Doesn't a house represent wealth just as much as anything else? I propose that in the event of catastrophic disasters that the government simply replace the value of an individual or family's equity in a home, with cold hard cash as soon as possible after a flood hurricane earth quake tornado or wildfire.
Of course we would only allow this to apply to homes, not businesses or corporations, because they would certainly figure out some way to abuse it, and just so people don't abuse it we should limit the amount to say $50,000 and in case of floods, require the people to move someplace geographically at least 20 feet higher than the highest flood stage in the region.
Ronald Gascon Presidential candidate 2016
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