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Can the National Flood Insurance Program Be Fixed to Florida's Benefit?
By: Lisa Miller & Associates
This week on The Florida Insurance Roundup (http://lisamillerassociates.com/
Joining host Lisa Miller, a former Florida deputy insurance commissioner, are guests Brian Squire, Managing Executive Senior Vice President at Hays Companies in Destin, Florida and Helen Devlin, Senior Lobbyist with the National Association of Realtors in Washington D.C. Together, they outline what's at stake for Florida NFIP policyholders and ideas on how best to balance flood insurance affordability with NFIP sustainability, without hurting Florida's growing real estate market.
The bill passed by the U.S. House would strip grandfathered NFIP rates after two future claims, with rates then rising 10% per year until hitting the current risk-rate. A third claim would raise rates 15% per year. The podcast discusses how this is meant to relieve some of the financial burden to the heavily subsidized federal government program, while providing greater cost accountability and sharing with those properties that continually have losses and keep getting rebuilt or repaired, only to have sometimes identical losses re-occur during the next event.
Brian Squire said the key to a more sustainable NFIP and one that encourages private flood insurance alternatives is to change the grandfathering provisions so current recipients can have safe harbor to move into the private market and move back into the NFIP without losing benefits, should the private market not work for them. He noted it's also important that private insurance companies be properly vetted and with state regulation to provide needed consumer confidence to make the switch.
Helen Devlin noted it's important to have a private market compliment to NFIP and that the National Association of Realtors has been working for years with Congress to make improvements necessary to safeguard property owners. Allowing portability of grandfathered benefits and more insurance options for consumers are key. She also noted the rates charged versus true risk "are out of whack" and that better utilizing improved modeling technology and other advances will create better coverage for more people without "sticker shock" premiums.
Links and Resources Mentioned in This Episode:
Brian Squire, Managing Executive Senior Vice President at Hays Companies in Destin, Florida www.hayscompanies.com
Helen Devlin, Senior Lobbyist with the National Association of Realtors in Washington D.C. www.nar.realtor (http://www.nar.realtor21st)
21st Century Flood Reform Act (H.R. 2874 (https://www.congress.gov/
The National Flood Insurance Program (https://www.fema.gov/
FEMA webpage on NFIP Reform (https://www.fema.gov/
Flood Insurance Writers in Florida (https://floir.com/
The Florida Insurance Roundup from Lisa Miller & Associates, brings you the latest developments in Property & Casualty, Healthcare, Workers' Compensation, and Surplus Lines insurance from around the Sunshine State.