Seven Out of 10 Voters Believe America Is Not Prepared for a Natural Disaster

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Realtors urge congress to actRISMEDIA, May 17, 2007-America is not prepared for a catastrophic natural disaster, and Congress must take action now.

That was the message delivered during the Insurance Availability in Disaster-Prone Areas session at the National Association of Realtors(R) Midyear Legislative Meetings & Trade Expo.

U.S. Reps. Ron Klein (D-Fla.) and Tim Mahoney (D-Fla.) participated in the session. They were appointed by House Financial Services Chairman Barney Frank (D-Mass.) to develop legislation to address the availability of homeowners insurance in disaster-prone areas.

“There is a role for the federal government to play when our communities are faced with a catastrophic event. Federal legislation to address this issue should assist the private insurance industry in managing risk, protect the rights of homeowners, and provide incentives for homeowners and builders to mitigate risk,” said Congressman Mahoney.

“One of the problems consumers face is the increasing cost and decreasing availability of homeowners insurance, which is not a problem limited to one area of the country. For this reason, Congress must act,” said Congressman Klein.

New polling data shows voters agree, according to Bill McInturff, co-founder of Public Opinion Strategies. A recently completed catastrophic insurance national survey found that seven out of 10 voters do not believe America is sufficiently prepared to deal with the financial and economic consequences of a major catastrophe and that Congress should take action.

The research also found a strong sense of shared responsibility when it comes to recovering from natural catastrophes. Ninety-five percent of voters believe insurance companies are responsible for the recovery, but approximately eight out of every 10 voters also believe that the federal government, their own state government, and individual homeowners should assume some responsibility for recovery efforts.

According to poll results, Realtors and voters were aligned regarding pre-emptive solutions such as strengthening local land use, providing tax deductions and credits, strengthening building codes, providing reduced insurance rates, strengthening infrastructure and requiring homeowners to take safety measures.

NAR believes federal policy that addresses catastrophic natural disasters should protect property owners by ensuring that transparent and comprehensive insurance coverage is available and affordable with premiums that reflect the risk involved, while also acknowledging that people living in high-risk areas must assume personal responsibility for those choices and undertake mitigation measures, including purchasing adequate insurance.

“Natural disasters like hurricanes and earthquakes uproot families and devastate communities, not only with their forces of nature but also with the altered insurance landscape that results in their wake,” said Lawrence Yun, NAR senior economist, who also participated in the session. “When people in high-risk areas cannot obtain or retain homeowners insurance, which is necessary for a mortgage, it can slow redevelopment, depress the local housing market, and prevent residents from buying and owning homes.

As America’s leading advocate for homeownership, NAR urges Congress to make natural disaster insurance affordable and available for homeowners and reduce the circumstances under which insurance companies cancel natural disaster policies.”

To drive this message home, Realtors are visiting Capitol Hill offices throughout this week to discuss passing comprehensive natural disaster insurance. More than a dozen legislative bills addressing natural disaster insurance have been introduced in the 110th Congress. Because none of these bills takes a comprehensive approach, NAR has not endorsed any of them. U.S. Reps. Klein and Mahoney expect to introduce legislation by the July 4th congressional recess. NAR will work with Congress to ensure that a satisfactory bill is drafted as well as generate strong support for that bill from every region of the country.

“Many bills are currently floating around Congress, but they are all piecemeal approaches,” said Yun. “If America is going to be truly prepared for a catastrophic natural disaster, a comprehensive approach must be firmly in place.”

For more information, visit http://www.REALTOR.org.

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Monday, March 22, 2010