October 15th, 2013 categories: Real Estate News
Following my recent blog post on flood insurance, which mentioned that there is some consideration of Florida withdrawing from the national flood insurance program, an article discussed a proposal by Sen. David Simmons concerning Florida and flood insurance. Simmons thinks the problem calls for a solution from the state of Florida. He suggests having private insurance companies step in to write flood insurance as an alternative to the national program. If private companies don’t do that, then he feels the state needs to step in and provide a “last-resort” market. Simmons thinks that the prospect of withdrawing our billions of dollars in premiums from the National Flood Insurance Program (NFIP) could also be leverage to prompt Congress to act.
Since 1978 Florida has paid $16 billion in premiums and has received less than $4 billion in claims. Yet the NFIP is now creating havoc with some premiums increasing by 1,000%. It isn’t fair that we’ve been subsidizing the rest of the country and it’s even less fair to significantly increase that subsidy!