If insurance companies decide not to insure in specific locations because the risk is too high then that will limit what many can do with that land. And for those who can afford to do it anyway, that’s fine too. They’re the ones taking the risk............
Seems smart to me but look at the flood insurance provided the feckless homeowner who builds in the lowlands. How soon will the taxpayer be asked to subsidize the mountain homeowner thus encouraging more unwise habitation.
Well the obvious answer is the government shouldn’t step in. When they do, it screws up everything. Why buy insurance if the government (taxpayers) is going to fix it anyway? It is an enormously stupid move by the government as it only leads to bigger and bigger disasters at the taxpayer’s expense while at the same time taking away the consequences of peoples risky actions. And if you take away the consequences of risky actions you get more of it - a lot more of it...