New Flood Insurance Rates Would Devastate Louisana Coastal Economy: Commissioner
Actuarially based flood insurance rates scheduled to be phased in starting next year are unaffordable to Louisiana’s coastal residents, and could have a devastating impact on the state’s economy, the state’s insurance commissioner says.
Jim Donelon made his comments to the National Underwriter as he prepared for a critical meeting Thursday with Federal Emergency Management Agency Associate Administrator David Miller, who oversees the National Flood Insurance Program.
A more acceptable alternative may be for the government to create a catastrophe, flood and earthquake reinsurance program as a backup to the current homeowners’ insurance program.
Congress, however, has repeatedly rejected such proposals. For example, legislation creating such a program, the Homeowners Defense Act, was introduced every year for four years by a Palm Beach, Fla., Democrat defeated in the 2010 election.