"The foolish man," Jesus said, "built his house upon the sand." The results were predictable. "The rain descended, and the floods came, and the winds blew, and beat upon that house; and it fell: and great was the fall of it.

Today, when the houses fall during the next hurricane, taxpayers will have to pick up the damage, thanks to foolish policies.

In an 11-page report (pdf), the Texas Public Policy Foundation foundation says that the state's insurer of last resort is unprepared for a large-scale storm. It has financial reserves of less than $2 billion, while a hurricane could inflict $10 billion in damages.

The reason for this precarious financial situation is that the premiums are below-market. The costs for rebuilding, however, won't be … below market, that is. Hence, the exposure.