On Monday evening , June 20, 2016 Congressman David Jolly, Jake Holehouse from Regions Insurance and David Altmaier, newly appointed Florida Insurance Commissioner, addressed the residents of VI and Shore Acres.
Congressman Jolly gave a federal update regarding FEMA.
FEMA is remapping for a modern map vs risk. This program might take several more years to finish.
FEMA has at least 20 billion in debt owed to the US Treasury because of disasters like Katrina and Sandy.
FEMA has now agreed to release some property information but, it involves a single request by fax. This is a step in the right direction since in the past other insurers could not obtain any property information to assess underwriting risks.
There is a bill to allow a homeowner to go out of the National Flood Program to a private insurer and back again if necessary.
Congressman Jolly has sponsored a bill , Natural Disaster Reinsurance Act of 2016. "This bill directs the Department of the Treasury to establish the National Commission on Catastrophe Preparation and Protection to advise it regarding estimated loss costs associated with contracts for reinsurance coverage.
Treasury may make homeowners protection coverage available through contracts for reinsurance coverage. Only eligible state programs may purchase such coverage.
Each contract for reinsurance coverage shall furnish insurance coverage against residential property losses to homes, including condominium and cooperative ownership, and the contents of apartment buildings.
The bill prescribes a minimum level of retained losses and maximum federal liability.
Any insurer who participates in an eligible state program may establish a Catastrophe Capital Reserve Fund to hold funds on Treasury's behalf to offset reinsurance claims.
The bill establishes the Consumer Hurricane, Earthquake, Loss Protection (HELP) Fund to: (1) make payments to covered purchasers under contracts for reinsurance coverage for eligible losses, and (2) pay for Commission operating costs and reinsurance program administrative expenses."
The general consensus is that with more data available to other insurance companies, there will be more options and lower costs for the homeowner.
David Altmaier told us there are eight private companies writing flood insurance.