California is the most populous and economically significant state in the United States, which alone could stand to be the 5th largest economy in the world. Cal

California is the most populous and economically significant state in the United States, which alone could stand to be the 5th largest economy in the world. California subsidizes other states, including those much much more prone to flooding, while the reverse isn't true in regards to earthquake damage. A lot of federal disaster aid is just Californian's own money being used to help them when needed. This is true for other states like NY. Lastly, California does indeed offer a very high deductible form of earthquake insurance, and it isn't federally subsidized like FEMA is.