8/27/2014 - NAMIC: Government Must do More to Curb Effects of Mother Nature
Due to the unavoidable nature of weather-related catastrophes and increasing costs that result from property damage, it's time the government start focusing more on disaster mitigation, lawmakers were recently advised.
Speaking on behalf of the National Association of Mutual Insurance Companies, Robert Detlefsen, Ph.D., vice president of public policy for the organization, told legislators that the government can start by encouraging states to implement strong building codes.
"There is overwhelming scientific evidence to support the conclusion that statewide building codes save lives and greatly reduce property damage and the subsequent need for federal disaster aid," said Detlefsen.
He added that based on an in-depth analysis performed by the National Institute of Building Sciences, for every $1 that's spent on strategies that help make buildings sturdier, it winds up saving taxpayers $4 in federal disaster assistance. Not only that, but a separate study came to similar conclusions, revealing that had the Building Code Incentive Act been in effect in recent years, Americans could have saved $500 million combined annually in hurricane relief payments.
"Natural disasters are inevitable, but while budgeting for disaster costs is not a perfect science, there are proven ways the federal government can plan more wisely for them," said Detlefsen.
He further stated that if Congress really wants to reduce the country's budget - and provide savings to taxpayers at the same time - it needs to "get serious" about helping communities and business owners plan for natural disasters.
After experiencing property damage following a storm that forces companies to close for repair purposes, 1 in 4 never re-open their doors again, according to data from the Insurance Information Institute. The Insurance Information Institute recently released a web video that delves into the importance of business owners insurance, which discusses how it can help entrepreneurs get their companies whole so they can resume operations.
For more information on coverage for businesses, talk to a local Selective agent.