Ray Kirby of Childress Engineering spoke at the First Party Claims Conference regarding the practical and technical issues building ordinances and laws have on insurance claims. He provided me with an excellent paper, Insurance and Building Codes, which touches on some of the topics he spoke about in his presentation.
Here is my interview of Ray Kirby:
An article in the Insurance Journal, National Flood Insurance Program Set to Expire Tomorrow, caught my eye. I think the threat of expiration is political gamesmanship, as indicated in the piece:
“John Prible, government affairs for the Independent Insurance Agents and Brokers of America, says the omnibus bill funding is currently being debated in the Senate but there's "a little game of chicken" happening between the House and Senate on any changes that may be made to the omnibus bill in the Senate. The debate could potentially derail the bill, he said.”
I wonder whether Mississippi Congressman Gene Taylor will try to use this opportunity to get the Multiple Peril Insurance Act of 2009, into law. I am not holding my breath, but stranger things have happened in the political arena lately. Taylor’s website has a summary of what he hopes his proposed legislation will accomplish:
“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 requiring participating communities to adopt International Building Codes.”
I recommend Slabbed’s excellent article, HR 1264 - One policy. One premium. One claims adjuster. Protecting America’s home & business owner. Protecting America’s taxpayers, which explains Taylor’s Bill.
Dr. Steve Lyons, The Weather Channel's Tropical Weather Expert, has admitted that he has been interested in property insurance and rates for the past fifteen years. He recently posted on the Weather Blog his opinion is that Florida's only long term solution to high insurance rates is to mandate that building codes be enforced so that buildings will be toughened to withstand hurricanes---my opinion as well. (see my previous posts and my comment to Lyons' blog post)
He also suggests that rate discounts be given to those who harden their structures. This is an excellent idea and is actually in place, although it is not well publicized. The Florida Legislature and Office of Insurance Regulation have laws and regulations which provide mitigation credits for rates and also grants under the My Safe Florida Home program. I wish more consumers took advantage of the program because it can reduce rates and prevent hurricane damage. Grants up to $5,000 are available and are tax free.
We need more celebrity experts such as Lyons calling attention to the need for hurricane mitigation. His reference to an article entitled, FLORIDA FLIRTING WITH HURRICANE INSURANCE DISASTER, should be a read for all concerned about the grave insurance situation facing Florida.
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