The Hartford Financial Services Group Inc. has proposed a far-reaching new plan – one that includes mandatory flood insurance, IRA-like catastrophe accounts, subsidized premiums for homeowners and a federal reinsurance program – that it says would better protect coastal homeowners and their insurers against major weather catastrophes.
To help right that maket, The Hartford’s proposal would:
– Mandate flood insurance for all coastal homeowners
– Create a federal and state-level reinsurance programs to backstop losses by private insurers
– Establish untaxed savings accounts (“supplemental catastrophic security accounts”) to pay for property insurance
– Create state subsidies for some coastal homeowners