The Competitive Enterprise Institute is taking aim at Florida's national catastrophe insurance fund, saying it would "redistribute wealth to people who already have a lot of money."
Noting that Tiger Woods, Sylvester Stallone and John Travolta have owned property "near the coast in Florida," CEI's Eli Lehrer argues that inland states would pick up the tab.
"Florida alone has just about $2 trillion in potential coastal losses but taxpayers throughout the entire country could potentially be on the hook for the whole amount," the senior fellow with the free market think tank said. "Most people who own beach houses are wealthy. They are the last people who need government help."
The fund, championed in the House by Rep. Ron Klein, D-Boca Raton, would set up a voluntary risk pool among states prone to natural disasters cleared the House in 2007 but stalled in the Senate. Klein says his bill is aimed at lowering the cost of insuring homes in states where the threat of hurricanes, earthquakes and other perils can send premiums skyrocketing.