Hurricanes, earthquakes, tornadoes and other natural
disasters pose a threat to every corner of America. Today, all taxpayers are
paying for the recovery efforts in the Gulf. Ginny's bill creates a federal catasrophic reinsurance
fund, which state cat funds would contribute to, so that the federal taxpayers
would no longer be forced to foot the bill for natural disasters.
H.R. 4366 encourages states to create
catastrophic funds by providing a federal backstop for those who do so. The federal fund, to be named the Consumer
Hurricane and Earthquake Protection Fund, or HELP Fund, will be housed in the
Department of the Treasury and will provide lower-cost reinsurance to state cat
funds, thus reducing the costs of homeowners' insurance to those around the
country. Under Ginny's
bill, should a 1:50 year natural disaster event strike a state, the federal
catastrophe fund would provide coverage up to a 1:500 year event.
While all Americans have seen the devastation of the
hurricanes that hit Florida, Mississippi, Alabama and Louisiana the last two
years, the insurance market must be prepared for the possibility of even bigger
disasters in the future. If the San
Francisco earthquake of 1906 were to hit today, the
estimated costs to insurance companies would run more than $400 billion. We need to have statewide cat funds, with a
federal backstop, to help ensure the stability and viability of the insurance
market for homeowners.Ginny has also worked with a new organization working to ensure that American's are informed and educated about the need for disaster preparedness. ProtectingAmerica.org is chaired by former FEMA head James Lee Witt and the former head of the Coast Guard, Admiral James Loy. More information about their efforts can be found at http://www.protectingamerica.org/.
As Floridians know all too well, when natural disasters strike, it is your family and your home that is most often directly affected You may lose your car, your personal mementos, or even your house to the ravaging effects of Mother Nature. While it seems like Florida has borne the brunt of recent hurricanes, it is clear to Ginny that natural catastrophes are national problems that need
Ginny also knows what these recent natural disasters have meant to you and your family when you receive your yearly rate increase in your homeowner's insurance bill. For families and seniors on limited incomes, an extra couple hundred dollars a year to insure your home from a hurricane might be too much for some people to bear.
That is why Ginny has introduced federal legislation, H.R. 4366, the Homeowner’s
Insurance Protection Act of 2005. This bill represents a comprehensive piece of catastrophic insurance
legislation designed to reduce homeowners insurance costs to American families and ensure
liquidity in the insurance market. Ginny's bill will establish a federal reinsurance catastrophic fund (cat
fund) as a federal backstop for future natural disasters.
Hurricanes Katrina and Wilma showed the nation what can
happen when Mother Nature wreaks havoc on American homeowners. More than a thousand Gulf Coast
residents lost their lives in the storm, and tens of thousands were left
homeless. The cost of rebuilding is
great. While Congress has met their
immediate needs, it is clear that our national response to natural disasters is
broken, and must be fixed.
More information about hurricane and disaster preparedness can be found here or by visitng FEMA's website at www.fema.gov.
REP. BROWN-WAITE’S INSURANCE REFORM LEGISATION PASSES THE U.S. HOUSE
BAKER SUBCOMMITTEE APPROVES BROWN-WAITE'S INSURANCE LEGISLATION
FINANCIAL SERVICES HOUSING SUBCOMMITTEE HOLDS DISASTER INSURANCE HEARING
On the Hill, Off the Cuff
JUNE 1ST OFFICIALLY STARTS THE 2006 HURRICANE SEASON
REP. BROWN-WAITE TOUTS FEDERAL CATASTROPHIC INSURANCE LEGISLATION