Wednesday, 25 July 2007
U.S. Reps Ready To Reduce Homeowners Insurance Rates
More and more homeowners along the Atlantic and Gulf coasts are having trouble finding insurance coverage. They’re paying larger premiums — often to more than double of what homeowners used to pay. But new legislation is in the works to help lower homeowners rates in hurricane-prone areas.
U.S. Representatives Tim Mahoney and Ron Klein are working on a bill that would start a national catastrophe program to give a federal backstop for private insurers. The idea behind the measure is to create private/public partnership which would share risk between insurance companies and the local, state, and Federal governments.
The “shared risk” could increase coverage for many coastal residents and help reduce homeowners insurance premiums to more affordable rates.
Mahoney, who is in the Financial Services Committee, hopes to refine the bill and introduce it to the floor before Congress goes to summer recess in August.
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