Allstate Insurance Company today lauded U.S. House passage of a bill designed to prepare and protect communities ahead of major natural catastrophes. The Homeowners' Defense Act of 2007 (H.R. 3355), approved Thursday by a wide margin, offers a comprehensive solution to communities hit by catastrophic events such as massive hurricanes, earthquakes, and wildfires.
“We applaud this first step in creating a public and private partnership to properly address the devastation caused by large natural disasters. The current system was created before the recent warming of the oceans and is no longer adequate to deal with the increased frequency and devastation caused by hurricanes. This bill will help the 60% of Americans who live in danger of hurricanes or earthquakes destroying their homes, without requiring major support from low risk areas,” said Tom Wilson, Allstate’s chief executive officer, said. “We are proud to be a part of ProtectingAmerica.org, which has more than 300 members that have been actively advocating solutions to this problem.”
The Homeowners' Defense Act establishes a national catastrophe program to increase access to insurance and protect consumers. The bill provides for federal loans and a financial backstop to state catastrophe funds that will help provide more protection at a lower cost to consumers. This encourages states to properly structure insurance regulations and pricing to accurately reflect risk. If losses exceed a fund’s financial capacity, then the role of the federal government would be determined in advance of a loss.
“Passage of this landmark legislation provides additional momentum needed to bring this concept to reality,” Wilson said. “Now that a companion bill has been introduced, we urge the Senate immediately to begin to take the additional steps needed to address this top national priority.”
The Allstate Corporation (NYSE:ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,600 exclusive agencies and financial representatives in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. Encompass® and Deerbrook® Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.
Brad Keena, 847/402-5600