Congressman Flood Talks California Wildfires & Home Insurance on Fox Business

WASHINGTON, D.C. – Today, U.S. Congressman Mike Flood appeared on The Big Money Show on Fox Business. As Chairman of the Financial Services Committee’s Housing and Insurance Subcommittee, Rep. Flood addressed key home insurance questions and concerns stemming from the wildfires in California. The segment can be found here. Highlights from the interview are provided below.

Rep. Flood: First and foremost, we want to take care of the people of California. This is an important state, and we have neighborhoods that have been ravaged—it’s a real disaster. There is a genuine concern on the part of all members of Congress, regardless of party. I do think it is fair, though, to ask questions about forestry management… to say to the Department of Insurance in California, “Why are we in such a bad spot?” 

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Rep. Flood: California’s Department of Insurance hasn’t allowed insurance companies to adequately price the risk. And as a result, you’ve had major insurance companies pull out of that state, saying, “We simply lose money.” Its Insurance Department is a disaster, and as the Chairman of the Subcommittee on Housing and Insurance, I fear that after the fires are dealt with, we are going to deal with a problem that will compound itself over the next couple of months. This is a real problem.