Should the US Government Pick Up the Tab for Uninsured Katrina Expenses?

shockerfan · #1 Aug 30, '05, 2:56 pm

This question came up on the radio today...I think its a good one for this forum. There will be a lot of people who either do not have insurance, or do not have insurancethat will not cover flood damage. Should the US governement bail them out?

Thekla · #2 Aug 30, '05, 3:04 pm

Quote:

Originally Posted by shockerfan

This question came up on the radio today...I think its a good one for this forum. There will be a lot of people who either do not have insurance, or do not have insurancethat will not cover flood damage. Should the US governement bail them out?

I think the federal government should do everything it possibly can to help the poorest, and now jobless, citizens. New Orleans is not just another resort town on the Gulf; it is a port city that's very valuable to the country. NO, along with all of the communities of workers in the oil industry, has to be rebuilt. The federal government provides low cost insurance for many million dollar homes in pricey areas along the coast, but those homeowners can afford the deductible. They LOVE the government backed insurance they can get.

We need to do a lot more for the poor and middle class who are greatly affected.

Fitz · #3 Aug 30, '05, 3:05 pm

The government needs to help in many ways. I don't know if they owe people new houses, but they do need to make all the reconstruction possible. I think that this is catastrophic and without a lot of help these people will not be able to go on.

We all need to help too. We can start with prayers, donations, and down the road perhaps habitat for humanity.

**Ani Ibi** · #4 Aug 30, '05, 3:16 pm

Quote:

Originally Posted by Fitz

The government needs to help in many ways. I don't know if they owe people new houses, but they do need to make all the reconstruction possible. I think that this is catastrophic and without a lot of help these people will not be able to go on.

We all need to help too. We can start with prayers, donations, and down the road perhaps habitat for humanity.

H4H, Bob Vila, Tai, Timberframers Guild, and the whole Home and Garden channel can be out there barnraising.

tcay584 · #5 Aug 30, '05, 3:40 pm

Quote:

Originally Posted by shockerfan

This question came up on the radio today...I think its a good one for this forum. There will be a lot of people who either do not have insurance, or do not have insurancethat will not cover flood damage. Should the US governement bail them out?

Hard to say, but I don't think they should be obligated. If I get into a car wreck in an uninsured vehicle, Uncle Sam sure won't bail me out.
I know that if the gov't started up a voluntary fund and asked citizens to participate, I would certainly do so.
However, after seeing the fraud committed in Miami after last year, there could be people who claim to have lost more than they did ("Oh yes, sir...well my $150000 house was washed away" when it was really a shack held together by safety wire). Disaster has such a way of bringing out the very worst in people.
Out of curiosity, aren't you required to have insurance if you have a mortgage?

shockerfan · #6 Aug 30, '05, 3:43 pm

Quote:

Originally Posted by tcay584

Out of curiosity, aren't you required to have insurance if you have a mortgage?

I heard on the radio today that flood insurance was not available to homeowners in flood planes.

**vern humphrey** · #7 Aug 30, '05, 3:47 pm

Quote:

Originally Posted by tcay584

Hard to say, but I don't think they should be obligated. If I get into a car wreck in an uninsured vehicle, Uncle Sam sure won't bail me out.
I know that if the gov't started up a voluntary fund and asked citizens to participate, I would certainly do so.
However, after seeing the fraud committed in Miami after last year, there could be people who claim to have lost more than they did ("Oh yes, sir...well my $150000 house was washed away" when it was really a shack held together by safety wire). Disaster has such a way of bringing out the very worst in people.
Out of curiosity, aren't you required to have insurance if you have a mortgage?

Check your insurance policy -- you'll find it doesn't cover floods.

The Federal Flood Insurance program covers that, but not eveyone is elligible -- depends on where you live, and what your local government has done to make you eligible, and for how much.

Many people choose NOT to have flood insurance on the theory that the government will pick up the tab anyway, so why pay premiums.

shockerfan · #8 Aug 30, '05, 3:47 pm

I think we should help out the poor who truly were immobile and did not have opportunity to live elsewhere.

I have a tough time covering those who intentionally build in flood planes, hurricane prone areas, etc. I have heard of people that had homes destroyed by the flooding of the Mississippi river, and then rebuilt in the same flood plane, only to have it again.

Also, If the government will act as an insurance agent, then why buy insurance to begin with (if available)?

I just want to make sure we help the needy and not the greedy (or the lazy).

**vern humphrey** · #9 Aug 30, '05, 3:51 pm

Quote:

Originally Posted by shockerfan

I think we should help out the poor who truly were immobile and did not have opportunity to live elsewhere.

I have a tough time covering those who intentionally build in flood planes, hurricane prone areas, etc. I have heard of people that had homes destroyed by the flooding of the Mississippi river, and then rebuilt in the same flood plane, only to have it again.

These are by and large the same people.

For example, the casinos in Mississippi are trashed. The poor people rely on them for jobs.

Quote:

Originally Posted by shockerfan

Also, If the government will act as an insurance agent, then why buy insurance to begin with (if available)?

I just want to make sure we help the needy and not the greedy (or the lazy).

Because they're inextricably linked. What good does it do to help the needy, if they have no jobs to go back to?

Jeffrey · #10 Aug 30, '05, 5:08 pm

If the government is going to help... maybe they outta help them relocate?

**pnewton** · #11 Aug 30, '05, 5:21 pm

No, at least not across the board. For those who had a mortgage, insurance (including flood) is usually required. For those without it, I can see underwriting low cost loans to rebuild and allowing the poorer to pay back according to their means.

That way people can get on their feet, without a free lunch for those who did not carry insurance.

**vern humphrey** · #12 Aug 30, '05, 5:58 pm

Quote:

Originally Posted by Jeffrey

If the government is going to help... maybe they outta help them relocate?

To where?

We're talking about whole cities -- New Orleans and Biloxi.

Philip P · #13 Aug 30, '05, 6:04 pm

It's the government's job to get involved when a disaster of this proportion hits. Frankly, if the government is unable or unwilling to get heavily involved, what's the point of having a government?

That being said, fraud is a real concern, as those who commit fraud are essentially robbing the truly needy. They are morally equivalent to those who take advantage of a situation to loot (as in loot merchandise, not foraging for food simply to survive). I am not sure how you balance the need to prevent fraud with the need to get aid to those who need it as efficiently and quickly as possible. Personally, I would be rather liberal in the initial providing of aid, but substantially increase the resources of those charged to investigate fraud and publically and substantially increase the penalties for fraud. Announce that fraud will be punished severely, and once things have calmed down, be sure that it is.

ChrisR246 · #14 Aug 30, '05, 6:09 pm

Lets be clear - "the government" only has money it collects from us, the taxpayers, anyway.

Why not skip the middleman, and all their inefficient costs, and rely on donations?

Let everyone decide if they want to help someone rebuild after building on a flood plain, not compel them to.

**gilliam** · #15 Aug 30, '05, 6:14 pm

The government is very heavily involved already.

Emergency contact / disaster relief information

The National Guard is answering the call. Via Drudge and the NYDailyNews, the Pentagon is sending help to hurricane-ravaged areas in Louisiana and Mississippi. More details from CNN. More than, 1,600 Mississippi Natonal Guardsmen have been called up to help with cleanup efforts and to deter looting.