Homeowners' Defense Act is Not the Answer to the Country's Homeowners' Insurance Woes

According to the Florida Coalition for Preservation, the National Wildlife Federation (NWF) joined forces with them to oppose the current Homeowners' Defense Act of 2007 that is currently making its way through Congress. This bill, if passed with the current wording, would establish a consortium by pooling each state's insurance risk.

Both the Florida Coalition for Preservation and the NWF disagree with some of the wording in this bill. In its current state, the bill would allow for development in some of this country's most ecologically unstable areas as well as grant low-interest loans to support this development. Their fear is that developing in these risky areas could cost lives during a natural disasters as well as unnecessary property damage. In the long term, the Florida Coalition for Preservation believes the overall cost of the bill is too much for the American taxpayers to bear.

According to the Florida Coalition for Preservation, many coastal areas and floodplains should not be developed. The government must be proactive when making decisions concerning the development of these areas. The last thing this county needs is another disaster like Katrina. Coastal areas and floodplains must be assessed prior to encouraging or even authorizing development. The worst case scenario of a natural disaster must be considered and the benefits of the development weighed against the risks of disaster. By building in these risky areas, developers and investors are taking a roll of the dice.

Another discouraging aspect of this bill is the wording that would give low-interest loans to developers. According to the Florida Coalition for Preservation, Homeowners' Defense Act of 2007 would authorize these loans with no limit to the amount to be given. They anticipate that many of the loans would have a payback date of 5-10 years in the future. In recent years, we have seen the costs of natural disasters sky-rocket. When you add this cost to that of these loans, many believe the taxpayers just can't afford it.