The Pyramid Scheme of Home Insurance
I’ve always been skeptical of government-backed monopolies and coercive institutions. Insurance—particularly home insurance in hurricane-prone areas—has long been a prime example of such a scheme. In the past weeks of hurricanes, when the winds cause catastrophic destruction and the rain pours down flooding entire cities, the insurance industry’s true nature is laid bare—a pyramid scheme that preys on the vulnerable and enriches the few at the expense of the many.