Homeowners Flock to Last-Resort Insurance Policies.

Many homeowners in disaster-prone areas are turning to last-resort insurance policies as private insurers pull back. These state-run plans were originally designed as temporary safety nets, but they are now becoming insurers of first resort in some high-risk areas. The surge in policyholders raises concerns about the plans' ability to handle claims efficiently and the potential need for a bailout in the event of a major disaster. State lawmakers and regulators are taking steps to reverse the influx into last-resort plans, but rate restrictions and reluctance to allow politically unpopular rate hikes pose challenges. [Extracted from the article]