As I have had it explained to me by my daughter, who works in the insurance industry, if you are insured by ABC Ins. Co., your premiums, as well as all those from other customers, go into a giant "pot". Most large companies are National, if not International. If a regional disaster, such as the one currently in Florida occurs, claims are paid out of this national insurance "pot", that has your $$$ in it, as well as $$$ from the rest of the nation, be it Hawaii, Alaska, or Kansas. The Florida claims are not paid out only from premiums collected in Florida. Premium payers across the country are helping out the reconstruction of Florida. In another disaster, say in South Dakota for example, your $$$ collected by ABC Ins. Co. in Florida go to help them out. As this national insurance pot of $$$ is depleted, premiums are raised to recoup it. In theory, by spreading the pain countrywide, an individual in the affected area is saved from a crippeling rise in insurance cost. Again, in theory, a disaster can happen anywhere. I cannot speak to the use of tax $$$ being used as a subsidy.