Capitol Beat
Tuesday, May 6th, 2003 Catastrophe Legislation & Regulation Liability PropertyThe problem of repetitive-loss properties has prompted legislators to consider efforts to reform the National Flood Insurance Program. Reps. Richard H. Baker (R-La.) and Doug Bereuter (R-Neb.) have introduced separate bills aimed at helping reduce the amount of money spent on frequently flooded properties. Baker is sponsoring the Flood Loss Mitigation Act (HR 670) and Bereuter has introduced the Two Floods and You Are Out of the Taxpayer’s Pocket Act (HR 253). The NFIP is the largest, single-line property insurance writer in the United States. The Federal Emergency Management Agency, which administers the program, has found that 48,000 insured properties are considered repetitive-loss risks and estimates that they alone incur $200 million in losses annually. Repetitive-loss properties are defined as those structures with two or more losses greater than $1,000 each within a 10-year period.
