Seen at Insurance NewsNet:
The Senate Banking Committee’s get-tough bill [last year] would have phased out below-market rates for non-primary residences, severe repetitive loss properties, business properties and any property that has sustained damage exceeding its fair-market value. But the measure never reached the Senate floor.
No bills have been introduced yet this year, but “there’s been lots of discussion,” according to Russell Riggs, who lobbies on environmental issues on behalf of the powerful National Association of Realtors. Even a few “discussion” drafts of possible legislation have been circulated around Capitol Hill, Mr. Riggs reports.[..]
Realtors and other members of the housing lobby argue that forcing owners of non-primary residences to pay full actuarial rates could be a disaster in and of itself for the vacation-home market. But that’s a difficult battle to fight because many such properties are located in the most flood-prone areas, and are a significant drain on the fund.
Hmmm.subsidies in a government-run insurance program. Who would have thought of that ever happening?