The U.S. House of Representatives passed legislation Thursday supported by Rep. Nick J. Rahall, D-WV, that offers a straightforward, innovative approach to address the growing crisis in the availability and affordability of homeowners' insurance.

"Homeowners across West Virginia and the United States are facing an economic crisis in large part due to the serious lack of affordable homeowners' insurance," said Rahall. "This bill restores reliability and predictability to the homeowners' insurance industry that is needed to help our residents afford insurance and be able to rebuild their homes, if a catastrophe strikes."

H.R. 3355, the Homeowners' Defense Act of 2007, focuses on stabilizing the catastrophe insurance market by expanding private industries capacity to cover a natural disaster and helping states to better manage risk. Under the act, states have the option to participate in the plan by allowing their state-sponsored insurance funds to voluntarily bundle their catastrophic risk with one another. Private markets - not tax dollars - would take on the risk through catastrophe bonds and reinsurance contracts. It also provides for federal loans to states impacted by severe natural disasters. Through this act, homeowners throughout West Virginia and the United States will have more access to insurance, which may ultimately result in lower insurance rates.

Sandy Dunn, President of the National Association of Home Builders and second-generation home builder from Point Pleasant, WV, joined Congressman Rahall in praise of the Homeowners' Defense Act.

"This bill will strengthen the homeowners' insurance industry by capping liability and managing timing risks for all natural catastrophes, greatly benefiting the homeowners of West Virginia," said Dunn.

"I am proud to have helped pass this bipartisan and responsible approach to the homeowners' insurance crisis that will expand coverage and stabilize the market. In Congress, I will continue to work to address the needs of West Virginian homeowners and provide them with tools they need to protect their homes," said Rahall.