Group supports multi-peril option

NAHB says business is bad

By MICHAEL NEWSOM
mmnewsom@sunherald.com
Posted on Sun, Sep. 09, 2007

The multi-peril insurance proposal before Congress gained a powerful endorsement on Saturday, from the 235,000-member National Association of Homebuilders at the group's national convention in Seattle.

Gulfport builder John Ruble, who sits on both the state and national chapters' executive boards, said the group that calls itself the "voice of America's housing industry" needs a multi-peril option as part of the National Flood Insurance Program to stimulate their business.

Ruble was credited with helping get the resolution passed by the group Saturday night.

Ruble said times are hard for a large number of homebuilders, especially those in coastal states, and the plan would obviously help South Mississippi.

"Our business is flat dead because our people can't afford insurance," Ruble said.

The plan, which helps those who live in high-risk areas for natural disasters, for South Mississippians' purposes expands the government's flood insurance to also cover wind damage. Many private insurance groups won't write policies on the Coast, and many aren't rebuilding their homes because of that.

He said among the group's member states are several that, like Mississippi, rely on "wind-pool insurance" which is a government-supported wind insurance of last resort for those who live in areas where private insurers have stopped writing wind coverage.

The NAHB resolution asked that the multi-perils guidelines not increase construction requirements beyond what is stipulated in state and local building codes, because stronger requirements might increase costs to homeowners who are already struggling to afford housing. The group contends current building codes, many that were passed after Katrina, offer enough protection.

Ruble said NAHB's Washington lobbyists will take their multi-peril plan suggestions to Congress to drum up support. The multi-peril plan is part of the proposed the Flood Insurance Reform and Modernization Act of 2007 known as House Resolution 3121.

U.S. Rep. Gene Taylor of Bay St. Louis, who has championed the plan, said it was a key endorsement and he credited the state's chapters for taking the message to Seattle.

"This is great news," Taylor said. "The endorsement of the homebuilders will add to the momentum for the multiple peril insurance bill. The homebuilders recognize that the collapse of the private insurance market in coastal communities is a national crisis. I am grateful to John Ruble, Bobby Rayburn and other Mississippi homebuilders for getting this resolution on the national association's agenda."

The Sun Herald published the original story on September 9, 2007.

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