Multiple Peril Insurance: Fundamental Home, Land Security

by Ana Maria



Thank heaven that the one policy for both wind and flood is gathering steam! The National Association of Homebuilders just endorsed the multiple peril policy proposal that Congressman Gene Taylor (D-MS) introduced and will soon be voted on by the entire House of Representatives. The Wall Street Journal recently reported on a survey conducted for the Independent Insurance Agents & Brokers of America the results of which were discouraging as far as the financial security that American families seek through their homeowners insurance.

"nearly three million Americans were dropped by their home insurers in the past two years—more than two-thirds of them in 16 Southeastern states.” [Emphasis mine, of course.]

This is a national problem. In Florida, State Farm is planning to drop 50,000 and Allstate 39,000 policyholders, the Miami Herald wrote in its editorial.

I’m glad to read of important voices and news outlets seeing the light and calling for federal action such as the multiple peril policy Taylor proposed. Thankfully, the paper joins a growing chorus of voices singing the same distinctive tune.

The market is dysfunctional.
The Miami Herald editorial continues.

Today, it should be obvious that the problem is bigger than Florida. It is time for the federal government to act accordingly.

Yeah, and it’s also bigger than Mississippi, Alabama, Oklahoma, California, or any of the other states that are struggling with a cornerstone of the financial security for American families and businesses, particularly small businesses.

To bring the multiple peril insurance policy into reality requires that our elected congressional leaders hear from homeowners and would be homeowners as well as from folks in important industries like the homebuilders. Bankers and realtors are two other industries that we need to get on board with actively endorsing and promoting one policy for both wind and flood.

So if you are a banker or realtor, and especially if you are a leader on a regional or national level, push to get your organizations to embrace this important proposal. Encourage members to contact their congressional representatives now. The multiple peril proposal is great for families and for businesses, because it will enhance the financial security upon which each depend. Clearly, this is among the most fundamental of home, land security.

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