Homeowners Defense Act

The Homeowners Defense Act: Introduced by Representatives Ron Klein and Tim Mahoney of Florida , this act would create a comprehensive system of state catastrophe funds and a federal catastrophe backstop. This bill is a useful starting point on how to best address national disaster recovery. The private insurance market alone has insufficient capacity to handle insured exposures for natural disasters and still meet its other insurance obligations. There is a need to stabilize the property insurance market against hurricanes, earthquakes and other catastrophic perils; to maintain solvency in the property and casualty insurance industry; and to ensure the availability of needed coverage.