TBO.com - TBO is Tampa Bay Online

Suncoast Pasco News

Mariano To Lobby For Catastrophe Fund

ADVERTISEMENT

By Carl  Orth | The Suncoast News

Published: February 23, 2008

NEW PORT RICHEY, Fla. - NEW PORT RICHEY, Fla. - Change might be blowing in the wind for insurance coverage for hurricanes and other natural disasters, Commissioner Jack Mariano thinks.

Mariano has been pushing hard for a nationwide fund for catastrophic insurance. Various proposals have been floating around for the past 12 years.

"I'm very, very encouraged," Mariano said about chances of passage of the catastrophic fund.

On March 1 and 2, the commissioner will travel to Washington, D.C., to help pitch the concept to the National Association of Counties board of directors.

He will emphasize how recovery costs for disasters such as Hurricane Katrina in 2005 extend far beyond New Orleans residents or even the state of Louisiana.

Mariano cited figures from the Florida Office of Insurance Regulations that the Katrina cleanup equated to an $810 tax bill per tax return for all Americans.

A catastrophic insurance fund might help shield people from large spikes in homeowner insurance premiums. Floridians experienced such spikes after a series of hurricanes in 2004.

The catastrophic fund would add a small fee onto premiums, much like the existing national flood insurance program, Mariano explained.

"You're spreading out that risk nationwide," Mariano said.

The U.S. House already has passed a resolution, the Homeowners Defense Act, to support the catastrophic fund. A U.S. Senate bill has been introduced, but no vote has been taken.

NAC's full backing might help convince senators, Mariano believes.

One member of the Senate, John McCain of Arizona, the likely 2008 Republican presidential nominee, has been opposed to a nationwide catastrophe fund. McCain has said he would prefer a regional fund covering states in the Southeast at the most risk of hurricane damage.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT