ProtectingAmerica.org Urges Senate to Pass Homeowners’ Defense Act |
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Written by U.S. Insurance News
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Friday, 15 February 2008 |
Homeowners need a break in their insurance premiums. That’s the view of ProtectingAmerica.org, a coalition of catastrophe experts that is pushing for the passage of the Homeowners’ Defense Act of 2007.
Homeowners need a break in their insurance premiums.
That’s the view of ProtectingAmerica.org, a coalition of catastrophe experts that is pushing for the passage of the Homeowners’ Defense Act of 2007.
The organization wants the U.S. Senate to vote on the bill, which passed the House last November. If it becomes law, homeowners would see a savings of $9.8 billion in annual insurance premiums.
Admiral James M. Loy, cochairman of ProtectingAmerica.org, said that consumers have struggled with the annual premium increases that have been driven mostly by unregulated foreign reinsurers. The problem would be addressed immediately, Loy contends, if the Senate passes the House version of the bill, sponsored by Reps. Ron Klein (D-Fla.), Tim Mahoney (D-Fla.), and Ginny Brown-Waite (R-Fla.).
Clearly, Floridians stand to benefit more than any other state from passage of the act. “Florida’s homeowners could immediately see $2.4 billion worth of premium savings if the bill were enacted,” Loy said. “That amounts to $376 for every homeowner in Florida.”
The House’s Subcommittee on Oversight and Investigations recently conducted a field hearing on homeowners’ insurance issues that revealed the billions Americans would save if the act is passed. “In light of the testimony that the committee heard … there is an urgent need for Senate action on this critical measure,” Loy concluded.
The Homeowners’ Defense Act of 2007 would create a privately funded national backstop that would support state catastrophe funds, like the Florida Hurricane Catastrophe Fund, and provide a stable, predictable source of coverage so that homeowners can recover and rebuild in the wake of catastrophic events.
In addition to the support of Florida governor Charlie Crist and every member of the Florida congressional delegation, the Homeowners’ Defense Act was cosponsored by more than four dozen representatives, both Democrats and Republicans. The bill passed the House of Representatives by a bipartisan vote of 258–155 on November 9.
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