Fla bill would encourage private alternatives to NFIP
The Florida bill, introduced in the state Senate by Sen. Jeff Brandes, R-St. Petersburg, authorizes insurers to write policies, contracts and endorsements for flood insurance coverage with minimums that match the requirements set by Fannie Mae and Freddie Mac for conforming mortgage loans, according to R. J. Lehmann, a senior fellow at the R Street Institute.
R Street Florida Director Christian Cámara says Rep. Larry Ahern, R-Seminole, has announced plans to introduce companion legislation in the state House in the coming weeks.
“Broadly speaking, Sen. Brandes and Rep. Ahern are looking to find private-sector solutions to alleviate the impact of sharply higher rates that may affect some National Flood Insurance Program policyholders in Florida,” Cámara says. “This bill responds to clear market demand to create these products, offers consumers more choices and, most importantly, does not put taxpayers on the hook through yet another state-backed insurance mechanism.”
Cámara says that, under the bills, the Florida Office of Insurance Regulation would have authority to review and approve flood-insurance rates, although insureds would retain the right to grant explicit consent to choose an alternative rating method not reviewed by the OIR.
