Posted: Sep 25, 2013 11:53 AM
Source: Associated Press
BATON ROUGE - Treasurer John Kennedy is suggesting Louisiana should consider getting in the business of offering flood insurance to its residents, to ease concerns of skyrocketing federal flood insurance rates.
Kennedy said Wednesday that state officials should look at the possibility of creating a state-run flood insurance company, similar to the way it created corporations that offer property insurance and worker's compensation coverage.
He said those companies helped stabilize the markets for both types of insurance.
The flood insurance rates charged through the National Flood Insurance Program, run by the federal government, are slated to rise steeply for many homeowners.
Members of Louisiana's congressional delegation are seeking a federal fix to keep lower rates in place, but that has stalled in Congress.
Kennedy says he thinks the state needs a backup plan.