Realtors Join Florida Businesses, Homeowners in Calling For National Insurance Reform
Florida homeowners and businesses staring down higher property insurance premiums have a new, powerful ally calling for relief, the Orlando Sentinel reported Tuesday.
The National Association of Realtors recently urged a Congressional subcommittee to craft a comprehensive disaster insurance policy. Some mechanism is needed to spread and minimize risk nationwide, the Realtors contend, such as national disaster insurance, so individual states and regions are not overwhelmed by catastrophic events such as earthquakes and hurricanes.
The powerful group representing 1.3 million members nationwide said when buyers and sellers cannot find insurance at reasonable rates, it can slow sales and jeopardize the economy. The association contends that the Florida housing market slowdown is, in part, the result of a lack of affordable or available homeowners insurance.
“We need to get something done. We’re pushing, not just for Florida, but for the whole country,” said Tom Stevens, President of the National Association of Realtors.
The downturn in home sales since last year can’t be fully explained by rising Florida mortgage rates, rising inventory and a normal cycle of housing patterns, according to a study by the Realtors. Because natural disasters from earthquakes to tornadoes can happen anywhere and overwhelm insurance markets, the key is a national policy so companies can’t walk away.
The Florida insurance industry has not endorsed a national catastrophe plan.
“Until we see specifics, it’s just not feasible to say anything,” said Gary Landry, spokesman for the Florida Insurance Council. “But people have to ask whether we need another government program. We’ve been saying for some time that we don’t have an insurance crisis in Florida. What we have is a hurricane crisis, and as long as hurricanes continue to be a threat, rates are not going to go down.”
A bipartisan bill introduced by senators from three storm-battered states — co-authored by Bill Nelson (D-Fla.), Thad Cochran (R-Miss.), and Mary Landrieu (D-La.) — calls for an investigation into ways to strengthen the insurance market. If passed, the bill would create a panel of experts to craft recommendations.
Echoing the calls for industry reform, the National Association of Insurance Commissioners recently adopted a resolution urging the creation of such a commission.
