NAR calls for proactive insurance policy
The program would reduce taxpayer bailouts following severe weather events.A proactive disaster insurance policy would remove some of the obligation faced by taxpayers after severe storms, according to a recent announcement by the National Association of Realtors.
The organization's immediate past president, Charles McMillan, outlined some of the details of the program to Congress. The policy would reduce the amount paid for by any particular group by receiving funding from insurance companies and property owners as well as each level of government.
This type of insurance policy would be particularly useful after catastrophic events, according to McMillan, who cited Hurricane Katrina as an example.
"Money would not have been paid by taxpayers had proactive federal policies and programs been in place to make property insurance more widely available and affordable," McMillan said.
Like current home insurance coverage, premiums paid under this program would reflect the level of risk property owners face. Homeowners would be required to acknowledge their responsibility in purchasing the appropriate level of insurance. The policy would also stress the importance of building codes and smart land-use as well as investments in infrastructure.
Many insurers currently offer discounts for homeowners who protect their property from severe weather conditions. This can reduce the number and size of claims made following a storm.
Posted: March 11, 2010
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