“When no private insurer is willing to cover a homeowner at a reasonable price, then there’s a sort of state backstop that’s in place to take that role, but it’s not designed to handle tens of thousands of policies,” Benjamin Keys, an economist and a professor of real estate and finance at the University of Pennsylvania’s Wharton School, previously told Newsweek. “They’re designed for very short-term disruptions in the market to make sure people have continuous coverage because without insurance they can’t get a mortgage, and the housing market shuts down.”
