Maxine Waters, co-author of the bill to "fix" the NFIP pool, known in Washington as Biggert-Waters, is now fighting to delay the necessary rate hikes. Most of the people who are co-sponsoring Waters' legislation in the Senate come from states that have been hit hard by recent disasters, including the Gulf Coast, the West Coast and North Dakota, whose Red River flooded badly in 2009. That's one big difference between business and government. Government can ignore economic reality if it wishes. Waters would delay the NFIP rate hikes for up to four years on all policies purchased after July 6, 2012 in order to conduct an "affordability" study. But casualty insurance rates aren't based on affordability. They're based on risk. Even studying affordability takes this out of the realm of insurance. The problem here is that government never wants to be the bad guy. It didn't want to tell people they couldn't build somewhere or maintain a beach house that was bound to disappear in a big storm. So rates were kept low. That also kept payout ratios low. Now legislators in the affected areas want to raise the payouts while stalling the rate hikes. That's not business. That's politics. Which you prefer right now depends on where you sit, whether that's next to a pile of rubble, a huge insurance bill or far from the flood zone. The decisions we make now will determine where and how we rebuild, and whether we can afford the next disaster. At the time of publication, the author owned no shares in companies mentioned. Follow @DanaBlankenhor This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.