Just in time for the start of hurricane season, the Florida Legislature has made it even easier for private insurance companies to write flood coverage in the Sunshine State. The private market is seen as a much-needed alternative to the debt-ridden, increasingly expensive, federal government’s National Flood Insurance Program (NFIP). Even more so for Florida consumers, who are largely subsidizing the program, receiving just $1 in claims benefits for every $4 paid in premiums.
Host Lisa Miller, a former Florida deputy insurance commissioner, breaks down how private carriers are being encouraged and we hear state Senator Jeff Brandes’ ideas on how Florida’s private market can work hand-in-hand with the NFIP. With less than 90 days remaining until the beleaguered NFIP expires, the U.S. House is making progress toward a series of reforms designed to tackle the programs $24.6 billion in debt and improve access and affordability for homeowners. One fix would expand mandatory flood insurance to most U.S. homeowners – just like the Affordable Care Act on the health insurance side – to subsidize the NFIP going forward.
Links and Resources Mentioned in This Episode:
- Florida Legislature Bill CS/CS/HB 813: Flood Insurance: http://www.flsenate.gov/Session/Bill/2017/813
- U.S. House of Representatives draft legislation to reform the National Flood Insurance Program (NFIP) is outlined in the Flood Insurance Affordability & Sustainability Act of 2017: https://www.cassidy.senate.gov/imo/media/doc/Cassidy-Gillibrand%20Section%20Summary%204_25_17_%20FINAL.pdf
- GAO’s Flood Insurance: Comprehensive Reform Could Improve Solvency and Enhance Resilience https://www.gao.gov/products/GAO-17-425?utm_source=blog&utm_medium=social&utm_campaign=podcast
- Top 10 Facts About the National Flood Insurance Program: http://lisamillerassociates.com/wp-content/uploads/2017/06/Top-10-Facts-About-the-National-Flood-Insurance-Program.pdf
- FEMA webpage on NFIP Reform: https://www.fema.gov/flood-insurance-reform
- Florida Office of Insurance Regulation’s list of flood insurance writers in Florida: http://floir.com/Sections/PandC/FloodInsurance/FloodInsuranceWritersFL.aspx
- LMA’s Private Flood Insurance & Resilience webpage
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