Congress considers disaster insurance solutions.NAA/NMHC were invited to testify before Congress on March 27 regarding the property insurance crisis in disaster-prone areas, such as the Gulf Coast, the East Coast and California. Noting that previous policy debates about insurance relief focused almost exclusively on homeowners, NAA/NMHC's testimony stressed the need for lawmakers to include the apartment industry in any federal solution to this crisis to avoid exacerbating ex·ac·er·bate tr.v. ex·ac·er·bat·ed, ex·ac·er·bat·ing, ex·ac·er·bates To increase the severity, violence, or bitterness of; aggravate: the nation's affordable housing shortage. Citing premium increases of up to 400 percent, substantially higher deductibles and, in some areas, a complete lack of coverage resulting from the 2005 hurricane season Hurricane season refers to a period in a year when hurricanes usually form. For more information see: Tropical cyclone#Times of formation. For a lists of past seasons, see:
Many property owners have been forced to buy exorbitantly priced insurance, often at the expense of other property improvements. Meanwhile, other properties remain uninsured, leaving these assets with no funds to rebuild in the event of a large-scale storm or earthquake. NAA/NMHC encouraged Congress to thoroughly consider several proposals that advance the goal of calming the market for catastrophic insurance coverage, including but not limited to creating a federal backstop to state catastrophe funds, tax-exempt catastrophe reserves for insurers, National Flood Insurance Program The National Flood Insurance Program (NFIP) was created by the Congress of the United States in 1968 through the National Flood Insurance Act of 1968 (P.L. 90-448). reform and the expansion of the Risk Retention Act. The hearing comes after a March 15 press conference by members of the House Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. Committee to comprehensively address hurricane and other natural disaster issues through a public-private partnership Public-private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies. These schemes are sometimes referred to as PPP or P3. . The Senate also initiated a legislative effort to improve the insurance market in disaster-prone areas. Key provisions of bills include the improvement of preparedness pre·par·ed·ness n. The state of being prepared, especially military readiness for combat. Noun 1. preparedness - the state of having been made ready or prepared for use or action (especially military action); "putting them and response, reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. reform, tax credits for mitigation and the potential to create a national catastrophe fund. |
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