Does the government subsidize fire insurance? I'm always taken aback when I see people rebuilding from a hurricane with subsidized wind and flood insurance. I understand why its nice for those that need it but has perverse incentives.
It does, although indirectly, through municipal fire departments. It's not "insurance" in the strict sense of the word, but it is an abatement mechanism designed to help minimize losses that would otherwise be borne by private insurers.
In California, if you can't get fire insurance through the private market, you generally have access to the FAIR Plan (https://www.cfpnet.com/about-fair-plan/). As the about page points out, it's not taxpayer funded - instead, companies writing home insurance in the state are required to contribute towards a share of risk in the plan.
