Posted On: October 1, 2007, 10:49 am CDT

Posted By: tinkerbell

As discussed in this forum, we are moving in the direction of federal intervention relative to the peril of wind in cat prone areas. As I see it, the private sector cannot and/or will not provide coverage for the windstorm exposure, as evidenced all up and down the east coast. Those that continue to offer wind coverage are charging premiums that are not affordable to most people. Although they may be actuarially sound premiums, they are not affordable. This means that more homeowners in these cat exposed areas go without wind coverage. When the big one comes and a large percentage of people who suffer devastating losses do not have the coverage, don't the feds step in anyway? If this scenario occurs with regularity, like it did with the peril of water, there will be a federal program put in place.