[Congressional Record Volume 154, Number 153 (Thursday, September 25, 2008)]
[Extensions of Remarks]
[Page E1914]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  EXTENDING THE AUTHORIZATION OF THE NATIONAL FLOOD INSURANCE PROGRAM

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                               speech of

                             HON. RON KLEIN

                               of florida

                    in the house of representatives

                      Tuesday, September 23, 2008

  Mr. KLEIN of Florida. Mr. Speaker, I rise to support the 
reauthorization of the National Flood Insurance Program.
  To be clear, there are certainly issues that Congress must address in 
any future consideration of the flood insurance program. But first and 
foremost, we must ensure that the NFIP continues to protect our 
communities.
  The NFIP was established to provide homeowners with protection from 
flood, following recognition that the private market was simply not 
capable of providing the necessary coverage. The program, which has 
been operating since 1968, is integral to ensuring that homeowners in 
high-risk areas, such as my South Florida district, are able to receive 
adequate protection from flood and are able to swiftly recover 
following a disaster.
  In Broward County, we currently have over 400,000 residential NFIP 
policies in place--which is more policies than any other county in the 
nation. Palm Beach County is also near the top of the list with over 
150,000 NFIP policies.
  The stability provided by the NFIP allows homeowners to responsibly 
insure their property from flood damage, which is especially important 
given the active the nature of this year's hurricane season.
  It's important to recognize however that the NFIP is only one piece 
of the larger puzzle of protecting our homeowners from disaster. With 
the property insurance crisis growing across the U.S., many people are 
facing difficulties protecting themselves against windstorms. And it is 
no longer simply a Florida problem, but is becoming a national issue. 
Policyholders are being dropped or are facing dramatic rate increases 
in states that are not traditionally considered high risk, such as 
Massachusetts and New York. Many insurers are no longer writing at all 
on the coasts of states like Delaware, Maryland, and Virginia.
  That is why Congressman Tim Mahoney and I introduced and passed the 
Homeowners' Defense Act last year. This legislation addresses the 
crisis in availability and affordability of homeowners' insurance. It 
helps states to manage the risk that has been assumed by their state 
sponsored insurance funds by allowing them to enter the capital markets 
to find global investors that would be willing to assume that risk on 
their behalf. Our plan aims to increase market stabilization, 
particularly in times following natural disasters when rates 
traditionally increase dramatically and homeowners are dropped from 
their insurers.
  With this legislation having already passed the House, I look forward 
to working with my colleagues in the Senate to pass our comprehensive 
plan to help homeowners and stabilize the market.

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