E-Newsletter

  • E-Newsletter



    *By submitting, you are subscribing to my newsletter.

Contact Ron

Kids Corner

RSS Button

Insurance Reform

The impact of rising homeowners’ insurance premiums, reduced coverage, and policy cancellations is a problem Floridians know all too well. But this is no longer just a Florida problem. With the risk of major natural disasters striking many parts of the United States, including tornadoes, earthquakes, wildfires, hurricanes and great floods, property insurance rates are skyrocketing through the United States.

In these difficult economic times, it is clearer than ever that we need real reform, and an innovative approach to spread the risk throughout the country. That is why I drafted a common sense plan, named The Homeowners’ Defense Act, to make sure insurance companies do what they are supposed to do – spread the risk.

In a historic move, the House of Representatives passed The Homeowners’ Defense Act on November 8, 2007, delivering a victory for homeowners in Florida and across the United States. With the passage of this bill, we’re one step closer to providing homeowners from all corners of this country the relief they deserve.

The Homeowners' Defense Act was drafted to address the growing crisis in the availability and affordability of homeowners’ insurance. Thirty-two states across the nation have established some form of residual market insurance plan to address availability and affordability. States around the country are increasingly assuming the burden of insuring homeowners who have been cancelled. 

This proactive approach focuses on providing an opportunity for states to responsibly plan for disasters ahead of time, while also offering emergency relief for those states that may be lower-risk regions. By planning ahead of time, states can reduce their catastrophe losses and get homeowners back on their feet as quickly as possible following a disaster.

 

HARNESSING THE PRIVATE MARKETS

The bill sets up a Federal Catastrophe Bond Consortium for state-sponsored insurance funds to voluntarily pool their catastrophe risk with one another, and then transfer that risk to the private markets through the use of catastrophe bonds and reinsurance contracts. Following the risk transfer, state-sponsored insurance funds would be better protected and increasingly able to provide services for those who are not able to find insurance on their own.

 

EMPHASIZING PERSONAL RESPONSIBILITY       

Acknowledging that homeowners are the first line of defense against a catastrophe, the bill encourages sound mitigation efforts and stresses the impact that homeowners can take to protect their own homes.

 

NEWS CLIPS AND MORE INFORMATION