Florida Hearing Set On Cat Issues

The hearing on "The Homeowners' Insurance Crisis: Solutions for Homeowners, Communities and Taxpayers" will review the crisis related to the availability and affordability of homeowners' insurance around the country, Rep. Moore said.

Rep. Ron Klein, representing Palm Beach County and a member of the Oversight and Investigations panel, will participate in the hearing. He also is author of legislation, "The Homeowners Defense Act."

Reintroduced in May as H.R. 2555, the legislation would allow states to join a national catastrophe insurance pool.

The bill is opposed by carriers and reinsurers that doomed it in the last Congress. The bill had strong support in the House in the last Congress but was rejected by the Senate in 2008 as an amendment to legislation that would reform and reauthorize the National Flood Insurance Plan.

Another problem is that it authorizes the Treasury Department to guarantee debt issued by eligible states to assist in their financial recovery from natural catastrophes.

This flies in the face of congressional and public concerns that the federal government debt burden is already too great.

Rep. Moore said the subcommittee will examine insurance industry coverage of catastrophic natural disasters, as well as the withdrawal of insurance companies from offering policies in coastal areas.

Other areas that will be covered are rising homeowners' insurance premiums and the resulting economic impact on state and local governments, as well as possible solutions to the homeowners' insurance crisis, Rep. Moore said.