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On the Issues: Homeowners' Insurance

The skyrocketing cost of homeowners insurance and the lack of access to affordable policies causes great financial strain for Florida's families. In Congress, I have consistently fought to lower property insurance costs for homeowners. I have heard from constituents who have seen their property insurance rates double and triple when they have not made a claim in years. This situation has only worsened as major insurance policy providers leave the Florida market all together. This is absolutely unacceptable and I firmly believe the federal government has a role to play in reducing risk for insurance companies and lowering costs for homeowners.

Any state in the United States can be hit by a natural disaster such as hurricanes, tornadoes, floods, earthquakes, and wildfires.  And, every Florida resident knows that we are particularly vulnerable to costly hurricanes. 

In the 111th Congress, I have proudly sponsored legislation with Rep. Ron Klein of South Florida to lower homeowners insurance rates. The Homeowners Defense Act of 2009 provides a commonsense solution to the property insurance crisis in Florida and across the nation. Under this bill, which passed the House in 2007, allows states to reduce risk by voluntarily bundling their catastrophic risk funds with each. These bundled funds would would provide a federal backstop for state supported insurance programs.  The federal backstop will ensure that individuals have access to affordable homeowner’s insurance in the event of a catastrophic natural disaster. By reducing risk and guaranteeing competition, this legislation will reduce rates for homeowners. I am confident about this legislation's outlook, as President Barack Obama has voiced his support for creating a national catastrophic fund.

Additionally, in the 110th Congress I introduced H.R. 2873, “The Affordable Homeowners Insurance Act” with Congressman Weldon.  This legislation specifically addresses the astronomical costs of insurance.  In the aftermath of Hurricanes Katrina and Rita, Congress permitted individuals to withdraw funding from their retirement accounts, penalty-free, to pay for repairs not covered by their homeowners insurance.  H.R. 2873 would extend this right to individuals living in Florida who suffer from hurricane damage.  This gives millions of homeowners who have retirement savings the option of choosing a more affordable homeowners insurance policy that offers lower monthly premiums and a higher deductible.  Homeowners who withdraw funds would be given a three-year window in which they could repay withdrawn funds into their retirement account.

Click here to watch Congressman Wexler participate in a hearing regarding high homeowners insurance rates.