Homeowners Insurance Relief Gains Momentum on Capitol Hill

Press Release

Homeowners Insurance Relief Gains Momentum on Capitol Hill

U.S. House passage late Thursday of a natural disaster assistance plan shows Congress finally is listening to homeowners in Florida, New York and elsewhere who are seeking much-needed help with skyrocketing property insurance rates, U.S. Sens. Bill Nelson and Hillary Clinton said.

It also increases the chance that the Senate might pass similar legislation Nelson has filed with Clinton, they said.

"Congress is taking a serious look at creating a much-needed national catastrophe assistance program to brace homeowners nationwide against natural disasters - and disastrous insurance rates," said Nelson, the cosponsor of eight measures aimed at creating a federal backstop.

"Too many homeowners are facing the choice of either sky-high homeowners' insurance premiums or little or no coverage in the event of a disaster," said Senator Clinton. "This sensible proposal will help ensure that catastrophe insurance will be available and affordable for all American homeowners."

Clinton and Nelson's legislation would allow multiple states to join together to help pay for each others' disaster costs and would provide them with low-interest federal loans when damages exceed the resources of state-run catastrophe funds.

Despite a veto threat by the president the House passed its version Thursday night, marking the first time lawmakers in Washington have signed off on a proposal designed to help states deal with insurance woes caused by hurricanes, wildfires and other natural disasters.

Long ignored by federal policymakers, the issue also got new life in the Senate earlier this week when Sen. Hillary Clinton joined with Nelson to introduce a plan similar to the House legislation by Reps. Ron Klein and Tim Mahoney.

Also Friday, the two senators called on Senate leaders to immediately bring the bill to a vote, bypassing the normal committee process.

"These catastrophes have left insurance markets in many states in disarray, unable to provide consumers with the coverage they must have to protect their homes and businesses," they said in a letter sent today to Senate Majority Leader Harry Reid. "Americans deserve quick action on this issue, and need this reform."
Click here for a copy of Clinton and Nelson's letter to Harry Reid.

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