OPINION | Why Rebuilding ‘Bigger and Better’ After Disasters Is a Mistake – Governing

"That leads to cascading questions. Should homeowners be allowed to rebuild in harm’s way? What standards will insurers insist on to minimize future claims? If homeowners decide not to buy insurance, will government backstop their losses? If government does provide the backstop, why would people buy private insurance? And if public institutions are going to step in, what level should be responsible: local governments, often hit by big losses themselves; state governments, with limited pocketbooks; or the federal government, facing soaring deficits and spiraling disaster losses of its own?"