Pro: The government is in a unique position to benefit those who have suffered catastrophic losses in natural disasters. Unless it rescues the victims of capricious, devastating natural events, the economic hardships to the affected communities and even to the nation as a whole could be greater than the cost of a bailout.
Con: When the government provides financial assistance to those who have lost property in natural disasters, it reduces the disincentive for some of its citizens to engage in risky behavior. For example, some people, if they were sure that the government would cover their losses, would choose to live in or near flood plains, earthquake zones, or areas prone to tornadoes.