Dem. Rep. Gene Taylor (MS) Trying To Reform Nat'l Flood Ins. Program

[Rage for Order]

x-posted from LBN

http://www.sunherald.com/278/story/100408.html

One by one, representatives of insurance companies lined up along a crowded testimony table Tuesday to criticize a proposal to create a federal hurricane coverage program before a House subcommittee.

Taylor says that insurers overcharged the NFIP (National Flood Insurance Program) for the property claims submitted by Gulf Coast residents after Katrina. Damage caused by flooding is covered by the NFIP, whereas insurers must cover wind damage under homeowners' policies. Taylor maintains that many companies took advantage of the NFIP, leading to the program's $17.5 billion deficit.

"Greed is the main disconnect in this situation," said Taylor, D-Miss. "It's easy for them to walk around in their Gucci suits and defend their companies, but the reality is down there on the Gulf Coast, where all of the destroyed homes and property of my constituents are. Of course, these companies don't want to change the rules that are currently in their favor. People who played by the rules and expected insurance companies to play by the same rules got screwed," said Taylor, whose bill would create financially sound premium levels to make the NFIP self-supporting.

"The proposal's actuarially sound rates still do not address the lack of flood coverage penetration," said Hartwig (president of the Insurance Information Institute). "It's not what will happen to the private sector, but what will happen to citizens and their taxpayer money."



Basically, Taylor wants the NFIP to add coverage for wind damage to the program. After Katrina, the insurance companies told people that the damage was caused by water, not wind, when in fact most of the damage on the MS Gulf Coast was caused by a "wind-driven" storm surge, i.e. the water would not have been there had the hurricane winds not pushed it ashore. By calling it flood damage instead of wind damage, the insurers were able to deny a large number of claims and skate on their responsibilities to homeowners.

[Rage for Order]

1. kick for Katrina victims

[Rage for Order]

2. Come on people! Please pay attention to this!

For the benefit of those who were wronged by the insurance industry after Katrina, and those who will be wronged in the future after the next Katrina-like hurricane if something isn't done now, let's keep this kicked and let Gene Taylor know that we support him in his efforts to reform the NFIP to include other catastrophic damage caused by natural disasters.

Excuse me while I borrow the motto from 9/11 and use it in reference to Katrina: "We Will Never Forget."

[Feron]

3. Insurance companies are scum...

What happened after Katrina is an absolute disgrace and unless something is done it will only get worse as insurers flee and premiums for even less coverage rise. Thank you for posting this article. :)

[wanpete]

4. I think he is trying hard to help the region. But Miss. is still a very red region. I keep up with

some of the recovery effort by reading Gulfcoastnews.com. I few reads of the publication and you know that there is still a very alive and kicking rethug following there. Trent Lott and Haley Barbour are treated like heroes by this publication, if that tells you anything. I used to love visiting the Biloxi/Gulfport area. Still had southern charm, beautiful homes by the gulf, and some fun gaming to boot. I visited the region just last weekend for the first time since Katrina. What a sad trip. Still lots to do. The area will never be the same. Condos coming. Some residents will never return because they cannot afford to rebuild. Houses gone with only steps remaining. It's hard to imagine, still, that in America, this area could still be so devastated two years after the storm. I wish Gene Taylor well...he's got an uphill fight there.