Once again, instead of walking the talk of jobs and economic recovery, government is about to stumble – tripped, this time, by lies about the need to enable the purchase of multiperil coverage and optional separate windstorm coverage under the NFIP as proposed in HR 1264.
The truth about the need for HR 1264 can be found on the Congressman’s website and is summarized in his recent “Dear Colleague” letter below”
You may have received statements or letters in opposition to H.R. 1264, the Multiple Peril Insurance Act. These statements all appear to be based on the same false assumptions that the private insurance industry is meeting the demand in coastal areas and that insurance premiums in coastal areas are appropriately priced. These statements are not supported by the facts or the economics of the hurricane insurance market.
There is no functioning, competitive market for property insurance in coastal areas. Millions of homeowners and business owners have inelastic demand, which means that they are required by their mortgages or lenders to buy windstorm coverage. However, private insurance companies are not required to sell it to them, and companies have stopped writing new coverage in most coastal markets, even though all of the Gulf states and most of the Atlantic states allow insurers to charge premiums that are several times higher than what they expect to pay in claims. Continue reading “Stop the lies about HR 1264- Taylor's bill to provide multiperil coverage under NFIP essential to strong economy”