US considers multiperil insurance bill
Legislation introduced in the US House of Representatives last week could see homeowners buy multiperil insurance from the National Flood Insurance Program (NFIP). But the move faces serious opposition in the Senate review stages.
Congressman Gene Taylor, who introduced the Multiple Peril Insurance Act into Congress last week, says US insurers are steering away from the cover after recent hurricanes. He says they are also increasing premiums on existing policies, cancelling policies or not writing new policies altogether.
“Apparently the insurance industry no longer wants to cover people for wind damage in coastal America or will not provide that coverage at a cost that is reasonable,” Mr Taylor said.
“As we found out after Katrina and our fellow Texans are finding out now after Ike and Gustav, insurance companies routinely and deliberately fail to pay on legitimate hurricane-related wind claims.”
While Congress passed an earlier version of Mr Taylor’s bill in 2007, the Senate and most of the property and casualty insurance industry oppose adding wind cover to the NFIP.
Congressman Gene Taylor, who introduced the Multiple Peril Insurance Act into Congress last week, says US insurers are steering away from the cover after recent hurricanes. He says they are also increasing premiums on existing policies, cancelling policies or not writing new policies altogether.
“Apparently the insurance industry no longer wants to cover people for wind damage in coastal America or will not provide that coverage at a cost that is reasonable,” Mr Taylor said.
“As we found out after Katrina and our fellow Texans are finding out now after Ike and Gustav, insurance companies routinely and deliberately fail to pay on legitimate hurricane-related wind claims.”
While Congress passed an earlier version of Mr Taylor’s bill in 2007, the Senate and most of the property and casualty insurance industry oppose adding wind cover to the NFIP.