Flood of Ideas
Rep. Taylor recommended a multi-peril flood plan policy, but is it a real solution?
Rep. Gene Taylor’s proposal for a multi-peril/wind and water policy to be offered by the National Flood Insurance Program might seem like a peachy solution to the nation’s coastal property insurance problems. If, of course, one ignores the fact that the NFIP is typically flat broke and bases its coverage on significantly outdated flood maps (some New England maps have not been revised since 1992). Also, if Taylor is in favor of charging “actuarially sound” rates for the multiperil coverage, he – and Congress – would be better off allowing the insurance industry to perform its job of doing just that. Unfortunately, a recent public hearing in Rhode Island proves that lawmakers’ idea of appropriate insurance rate diverges wildly with the industry’s. The event also confirmed that Ocean State legislators have abandoned any semblance of taking a reasonable look at all the facts and are simply grandstanding for the public.