Yes, the family had not paid the insurance. But why does that matter in the context of the blanket claim that private companies can always do at least as good o

Yes, the family had not paid the insurance. But why does that matter in the context of the blanket claim that private companies can always do at least as good of a job as a government organization with less waste? A city firefighting crew would not refuse to put out this fire so it is an example of a service that was provided at a lower quality in the private market due to market incentives.