Catching up with Chip Merlin

I had a minute and surfed Chip Merlin’s blog and found a couple of very interesting posts. The first one is here. In it Chip talks about the Senate vote on Multi Peril Insurance.

If another hurricane the size of Katrina or stronger strikes a metropolitan area this summer or fall, I am certain that we will have a repeat of the litigation and problems associated with Katrina. On May 8, the United States Senate voted against increasing the role of the National Flood Insurance Program to include coverage for ”wind” peril……..The Senators supporting the measure were from the coastal states most effected by hurricanes. These southern Senators and their constituency are increasingly facing the problem that private property insurance carriers will not sell a policy that covers the perils posed by a hurricane.

I met with Gene Taylor, a United States Representative from Bay St. Louis, Mississippi, in early 2007 regarding this problem. Hurricane Katrina destroyed his home and those of friends. He understood that coastal policyholders with complete destruction were only getting the flood damage paid for under the coverage purchased through the National Flood Program. Despite homes miles inland being paid signicant benefits under their all risk coverage from wind damage, coastal insureds suffering from a combination of wind and flood were generally getting paid pennies on the dollar for wind related damage. He and other coastal Representatives believe that the only solution available is to make available a policy that covers both the water and wind perils which occur during a hurricane. As I previously stated, the Senate voted against such coverage.

The experience of Gene Taylor is accurate. Continue reading “Catching up with Chip Merlin”

The Commish Gets a Wind Pool Education…..

The first incarnation of Commissioner Chaney mentioning wind pool rates and pre Katrina pricing levels was at the Chamber luncheon last month when (I thought) I heard him tell the crowd that by June of 2009 we’d be back close to pre Katrina levels for wind pool pricing. Somehow I missed this yesterday:

Coast insurance premiums will reach “nearly pre-Katrina levels by June,” Mississippi Insurance Commissioner Mike Chaney says in a news release about the state wind pool.

The paying public didn’t miss it as our Insurance Commissioner’s Tuesday Press Release was soundly ridiculed by Sun Herald readers:

They are closer to pre-Katrina levels except that they are 75% more expensive. C’mon. Do the Math: 1,189 over 679. What a joke!

thought you had to at least have some math ability to get a job as commissioner… apparently not – $1189 = $679. It doesn’t take a rocket scientist to know that those 2 numbers are not even close…

Just once I would like to hear the truth from a politician. If they can’t do the math, they should get someone who can to explain it to them. If I had a house payment I couldn’t afford my house because of the insurance. Affortable housing isn’t the ptroblem. Insurance is the problem. Continue reading “The Commish Gets a Wind Pool Education…..”