Florida’s flood laws can be a nationwide model
By Lisa Miller
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Last month, the National Conference of Insurance Legislators (NCOIL), a group of state lawmakers from around the nation, began taking a closer look at Florida’s model flood insurance regulation to see if it can be used successfully to encourage a vibrant private market in all 50 states.
Those of us from Florida know the success it’s had here: The number of private companies offering flood insurance has more than doubled in the past two years (from 10 companies in 2016 to 25 companies as of the end of July). They’re also offering better pricing. Consumers are saving significant money through these private market alternatives.
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Florida’s flood insurance laws are simple and flexible, with the goal of providing consumer choices and alternatives to the debt-ridden, outdated and increasingly expensive NFIP.
The draft narrative language provides the following:
- Form approval if the regulator currently requires such to ensure policies meet or exceed available NFIP coverage.
- The ability for insurance companies to test rates in the market without prior approval.
- Notice of intent from insurance companies to regulators to enter the market.
- Consumer education by insurance agents about flood peril and the coverages available.
- Regulator certification that the policies are adequate to meet banking regulation mandates in mortgages
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