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Financial Services Hearing: Natural Disaster Insurance

Posted on by Jesse Lee

The Financial Services Committee has just concluded yet another hearing related to Hurricane Katrina and our government’s response to natural disaster: “Perspectives on Natural Disaster Insurance.”

See witness list >>

Rep. Gene Taylor (MI-04) gives opening remarks as a witness on his suggestions for government action with lessons from Hurricane Katrina:

Rep. Gene Taylor:
“So Madam Chairwoman what I’m asking you to do is, in response to the fact that the insurance industry apparently no longer wants to cover people for wind damage in coastal America or will not provide that coverage at a cost that is reasonable, is to consider legislation that would expand the national flood insurance program to include all natural perils. Under the rules of this House, it would have to be done in a way that pays for itself, thus any argument that it would be taxpayer-subsidized would be eliminated.”

Reps. Ron Klein (FL-22) and Tim Mahoney (FL-16), both New Members, give testimony on the experience of their constituents in the wake of Hurricane Rita:

Rep. Ron Klein:
“It only takes one day of devastation from an earthquake, fire, volcano, flood or hurricane to make us wish that we had thought ahead to establish a national system to deal with catastrophic financing…”
Rep. Tim Mahoney:
“Millions of Florida’s hard-working families have paid their insurance premiums on time for years, despite the increased costs. In additon many of these families have never filed a claim on their policy. Insurance companies have rewarded these responsible homeowners not with rebates, but with non-renewal notices…”
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