Natural Disasters Won’t Wait

It’s the same old thing every year. Some area is devastated by a natural disaster and before the recovery gains steam, there are tragedy and destruction in another section of America. Every year, the one true solution--federal disaster insurance legislation--comes before the Congress and lamentably winds up on the cutting room floor, despite all the evidence of need.

Just take your pick in the 1990s: Ice Age-like winter storms in the Midwest and north-central states last winter and more of the same in the Northeast this winter; forest fires on Long Island, of all places; Mississippi River floods so severe that entire towns had to be moved; record tornado activity; and don’t forget the nation’s costliest hurricane (south Florida) and earthquake (Northridge). Now, El Nino-driven storms have cut a swath along the nation’s southern rim. And we’re all in the same boat. Each of the 48 contiguous states suffered disaster damage of at least $1 billion between December 1992 and February 1994. The Insurance Information Institute noted similar levels of damage in 36 disaster areas in 1997.

Again, a familiar refrain: Governors beg for federal relief. Region is pitted against region, and some states, including California, try to fund their own insurance plans. But California quake and fire insurance costs much and insures little, and state plans can be wiped out by one big event. Meanwhile, private insurers in several states continue to raise deductibles and cut back on new homeowner policies. Now, the Insurance Information Institute projects that an epic disaster in a major metropolitan area “would almost certainly exceed $50 billion” in damage. Whew.

That ought to spur interest in the several bills on disaster relief and insurance currently alive in the Congress. Two that seem to have legs are House bills 219 and 230, offered by Reps. Rick Lazio (R-N.Y.) and Bill McCollum (R-Fla.), respectively.

Lazio’s would create a federal Disaster Reinsurance Fund to back up state insurance programs. McCollum’s would stress better coverage from private insurers and state insurance pools. The Clinton administration is proposing aid to state and local governments to shore up levees and reinforce bridges and the like. But all of these fall short of a straightforward federal insurance plan, one that might resemble the praiseworthy federal flood insurance program.

Lazio’s bill has the most California co-sponsors, nine. That means that many members of the large California delegation haven’t yet chosen a course. It’s high time they spoke out on the matter. Californians would be greatly helped by a good bill; the state’s delegation has to help mold it.