WEXLER introduces BILL TO REDUCE HOMEOWNERS INSURANCE Costs
Wexler and Weldon Introduce Bipartisan Legislation to Assist Families Affected by Hurricanes

(Washington, DC) As Florida and other coastal states brace for the 2007 hurricane season, U.S. Reps. Robert Wexler (D-FL) and Dave Weldon, M.D. (R-FL) have introduced The Homeowners Insurance Affordability Act of 2007. The bipartisan legislation could help millions of families living in disaster-prone areas better afford sky-rocketing insurance.

“We have a shared interest in protecting the safety and financial well-being of homeowners across the country who live in regions in risk of natural disasters,” Congressman Wexler said. “This legislation gives homeowners the extra freedom that can make a big difference for Floridians struggling with increasingly unaffordable rates. The situation in Florida has reached crisis proportions. Giving homeowners more options is a critical step towards providing relief.”

The bill borrows from action taken in the aftermath of hurricanes Katrina and Rita that helped thousands of homeowners in Louisiana and Mississippi recover. The bill permits individuals to withdraw money from retirement accounts penalty-free to pay for repairs not covered by their homeowners insurance. This will enable homeowners to take out an insurance policy with a larger deductible because they will not face a tax penalty for dipping into retirement savings to cover repairs. Not only will that money avoid the 10% early withdrawal penalty on retirement income, homeowners can pay the income tax owed on the money over three years, reducing the financial impact of the withdrawal.

“The 2004-2005 hurricane season wreaked havoc on our coastlines, piling up nearly $250 billion in damages,” said Weldon. “It also wreaked havoc on our homeowners’ insurance market. Consequently, many Florida homeowners, particularly those on fixed incomes, have either been dropped from their insurance or are having trouble paying costly premiums.” Weldon noted that some of his constituents have seen premiums increase 500% in the last two years.

By putting more options in the hands of homeowners, today’s measure could produce downward pressure on the insurance market, resulting in lower premium costs and more competition. Co-sponsors of the Weldon-Wexler bill include Florida Reps. Alcee L. Hastings, Ander Crenshaw, Bill Young, Ginny Brown-Waite, Lincoln Diaz-Balart, Ileana Ros-Lehtinen, Mario Diaz-Balart, Tom Feeney, and Gus Bilirakis.

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Congressman Wexler is Chairman of the Europe Subcommittee and a senior member of the House Committee on Foreign Affairs and the House Judiciary Committee; and he also sits on the Financial Services Committee.

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