Two congressmen from Florida are throwing their weight behind legislation that would give consumers greater options in flood insurance selection.
In an opinion piece published on the Sunshine State News website March 15, Rep. Dennis Ross, R-Fla. and Rep. Patrick Murphy, D-Fla. jointly shared their sentiments regarding Florida’s flood insurance situation. Both congressmen believe that the bipartisan Flood Insurance Market Parity and Modernization Act can expand the number of insurance options available to homeowners in the state.
The opinion piece underlined Florida’s great need for flood insurance options, more so than any other state. According to data the congressmen cited, Florida surpassed all other states in total number of insurance claims and total claim payments for flooding in 2014. Also, in the past five years, all 50 states experienced floods or flash floods. The same data also detailed that out of the top 10 claiming states for that year, Florida’s total number of claims was three times more than the national average, and its total claim payments was more than four times the average.
The congressmen then highlighted the importance of flood insurance, which helps homeowners cope with the serious risks involved with such disasters.
While the two believe that flood insurance is a must for homeowners, consumers traditionally only have one choice for coverage: the National Flood Insurance Program.
Although the NFIP provided consumers with flood insurance, it was not without its shortcomings, said Ross and Murphy. For instance, a typical NFIP policy would only cover up to $250,000 of damages related to a residential home. NFIP policies also do not cover for homeowners’ living expenses if they were displaced to temporary housing following a flood. For businesses, the NFIP policies do not offer coverage for flood-induced financial losses.
It was due to the NFIP’s limitations that the two congressmen introduced H.R. 2901—the Flood Insurance Market Parity and Modernization Act. The legislation would remove any unnecessary regulations that hinder the development of a private flood insurance marketplace.
With private competition through the bill, there would also be greater innovation in insurance offerings and the affordability of insurance policies would improve.
The bipartisan bill passed through the House Financial Services Committee unanimously, 53-0.
At the end of the piece, both congressmen stated that they will continue to push for the bill until it is enacted.
