Multiple Peril Insurance Act of 2009: The Facts

Multiple Peril Insurance Act of 2009: The Facts

Multiple Peril Insurance Act of 2009: The Facts

ShareThis I am asking Congress to consider legislation that would allow the National Flood Insurance Program to include an option on wind so American home and business owners can have one property insurance policy for both wind and flood. Under the rules of this House, it will be done in a way that pays for itself, thus any argument that it would be taxpayer-subsidized is eliminated. - Rep. Gene Taylor Multiple Peril Insurance Act of 2009 Multiple Peril Insurance Act of 2009 See also: Multiple Peril Insurance Basics Summary The Multiple Peril Insurance Act would allow coastal homeowners to buy comprehensive insurance and know that hurricane damage will be covered without lengthy legal disputes over how much damage was caused by wind and how much was caused by flooding. After Hurricane Katrina, insurance companies overbilled taxpayers and underpaid homeowners by blaming flooding for some damage that had been caused by hurricane winds and wind-driven debris. The bill will reduce future property damage by requiringparticipating communities to adopt International Building Codes. Limits of Coverage Residential coverage $500,000 for structure $150,000 for contents and loss of use Nonresidential coverage $1 million for structure $750,000 for contents and business interruption Windstorm insurance would be available only where local governments adopt and enforce the International Building Code or equivalent building standards. Premiums Premiums for wind coverage would be risk-based and actuarially sound. The Congressional Budget Office has agreed that the program would pay for itself. The federal multiple peril insurance program will spread the risk geographically to form a much more stable insurance pool than state wind pools that cover a much smaller area through which it spreads the risk. Benefits to American Taxpayers The Multiple Peril Insurance Act would benefit taxpayers by providing for prompt and full payment for wind and water damage. That will reduce the need for FEMA trailers, housing vouchers, subsidized loans, tax deductions, and other federal assistance. The bill requires premiums to be risk-based and actuarially sound so that the program pays for itself. CBO scored the bill as budget neutral. Opportunities For Private Insurance Companies Today, insurance companies continue to withdraw from the nation's coastal marketplace leaving American property owners without access to affordable and dependable insurance coverage. Under the federal multiple peril insurance program, insurance companies could return to coastal communities to sell fire, theft, and liability coverage, and excess coverage above the $500,000 or $1 million federal policy limits. Property Owner Peace of MindBenefits Property owners would be able to buy insurance and know in advance that hurricane damage would be covered regardless of whether the wind, water or some combination of each caused the property damage. Coastal America's Homeowner Insurance Crisis Multiple Peril Insurance Basics Water/Wind Dispute: The Eye of the Insurance Storm The Insurance Industry's Inherent Conflict of Interest Anti-Concurrent Causation: Insurer's Hidden Weapon Against Homeowners Evidence of Insurers' Defrauding National Flood Insurance Program (NFIP) Insurers Outsourced Their Cost of Living Expenses to American Taxpayers Insurance Executives: Pocketing Premiums, Padding Profits, & Passing Out Big Salaries and Bonuses Insurance Companies Exempt from Nation's Anti Trust Laws Back to the Multiple Peril Insurance Act Home Page