As South Florida residents know all too well, this is the time of year that we may experience heavy flooding due to a combination of heavy rain, low elevation and inadequate infrastructure. With scientists warning of impending doom due to sea level rise, it is critical that local and state leaders put in place the proper amount of mitigation to plan for the future.
Florida has more private property at risk from flooding linked to climate change than any other state, with $69 billion in coastal property at risk of flooding at high tide by 2030 and reportedly $152 billion by 2050.
Earlier this year, State Sen. Jeff Brandes, R-St. Petersburg, pushed legislation into law that improves coastal development standards and provides consumers additional flood insurance protection choices. The law provides consumers the option of flexible flood insurance, which specifies coverage amounts and options of policy coverage.
Two U.S. House members — Patrick Murphy, D-Stuart, and Dennis Ross, R-Lakeland — are bringing the issue to Congress through The Flood Insurance Market Parity and Modernization Act. Advocates from Stronger Safer Florida think it’s a good thing for Florida and our country. The bill authorizes equal treatment of the National Flood Insurance Program and private flood insurance, allows for private flood insurance on the remaining principal of a mortgage instead of the full value of the mortgage and allows consumers to switch between private and federal insurance without penalty. These options must be approached with care because we do not want underinsured homeowners asking for additional taxpayer help, and we want to discourage rebuilding in high-risk areas.
Informed consumer choice is always important, especially in insurance. The act seeks to improve the private flood insurance market by removing federal restrictions that limit locally specific coverage solutions. NFIP has implemented some steep rate hikes and revised flood maps, with the intention of making the cost match the actual risk. But this may lead to problems for homeowners, whether it is because the maps or values are wrong or because the cost is simply too high. We recognize that NFIP is sometimes correct in assessing risk versus cost, but perhaps the program should embrace market solutions.
As the effects of rising seas and flooding intensify, we will need to mitigate the problems before they cripple our economy. Major flood claims could have the same effect on Florida’s consumers as a season of hurricanes, and it’s something that local and state leaders must address through improved building codes and the reduction subsidies for coastal development. These are all factors Florida leaders must address head-on.
The act will give more power to state insurance agencies, which know their states better than federal regulators. It will allow for specifically tailored policies based on local factors.
Choice and competition are a consumer’s best friend, and in the arena of insurance this Florida-born solution should be supported by Sunshine State residents and business owners. Flooding is — and will be — an issue for years to come, so protection is important. Consumers should have more choices and fewer penalties for exercising those choices. This legislation is a win-win for consumers and a big win for Florida.
