Declarations

N.J. pays premium

Flood insurance is a particularly salient issue for my home state of New Jersey. Surrounded by the Delaware River to the west and the Hudson River and Atlantic Ocean to the east, New Jersey is especially prone to damaging floods. Additionally, the average property value in New Jersey is close to the highest in the nation. Subsequently, New Jerseyans already pay very high premiums averaging approximately $630 per policyholder, 38 percent more than the national average of $455 per policyholder.

Sen. Robert Menendez, R-N.J. during Senate Banking mark up of The Flood Insurance Reform and Modernization Act of 2006

Map quest

I believe the federal government needs to provide Americans with the most accurate data that reflects flooding hazards from hurricanes and other natural events so that homeowners, businesses, and communities know their risk. Unfortunately, FEMA’s flood maps do not reflect the real flood hazard risks. Over 70 percent of FEMA’s maps are over 10 years old. In the case of Rhode Island, many maps are over 20 years old. Development alters watersheds and floodplains and its effects on floodplains are not accurately reflected in FEMA flood maps. In addition, these maps do not include information on coastal flooding reflected in the Army Corps of Engineers’ inundation maps. This is important information needed by the public to assess their risks.

Sen. Jack Reed, D-R.I., during Senate Banking mark up of The Flood Insurance Reform and Modernization Act of 2006

Family fraud

“This particular gang of con artists may be the most brazen defendants to ever be prosecuted by our Insurance Fraud Section. Together, they pretended to suffer serious injuries from staged slip-and-fall accidents, car wrecks, food poisonings and work-related incidents. They were each other’s witnesses, and even faked evidence to bolster their claims. Three of the suspects used their minor children as claimants and witnesses in several bogus filings.”

Pennsylvania Attorney General Tom Corbett on six suspects sentenced in one of the largest “slip and fall” rings in Pennsylvania history known as “Operation Family Fraud.”

Driven to safety

“I always tried to stay under 60 or 65.”

Conn. trucker Robert C. Wrenn, who drives a division of Smithfield Foods of Smithfield, Va. and has charted more than 6 million miles with no accidents or traffic tickets. He was one of four drivers inducted into the truck driver hall of fame.

Litigation link

“For the price-gouging hypothesis to make sense, insurance industries must be exercising monopoly power. We find that states with more concentrated insurance industries actually have lower premiums.”

Alexander Tabarrok, associate professor of economics at George Mason University and director of research for The Independent Institute, and Amanda Agan, an economics researcher at George Mason University, in their report linking medical malpractice premiums in New York directly to the state’s malpractice litigation awards rather than to cyclical pricing.

Cape fear

“I’m not making any money from this. Really.”

Bill Siclari, president, Patrons Group, based in Connecticut, whose company is passing along rate increases of as much as 200 percent on Cape Cod homeowners policies. Other insurers are also either hiking premiums to cover reinsurance costs or exiting the coastal market.

Home protection

“Contrary to what most people believe, home is not the safe haven we think it is. With more than half of all accidental deaths occurring in homes and communities, we have a greater challenge protecting the public from injuries while off the job than in America’s workplaces.”

Alan C. McMillan, president and CEO, National Safety Council

Topics Flood New Jersey