SE Nebraska News

Today, U.S. Congressman Mike Flood participated in an interview on The Big Money Show on Fox Business. As the Chairman of the Financial Services Committee’s Housing and Insurance Subcommittee, he discussed significant concerns related to home insurance following the wildfires in California.

During the interview, Rep. Flood emphasized the importance of addressing the needs of Californians affected by these disasters. He stated, "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." He noted that there is bipartisan concern over this issue but raised questions about forestry management practices and accountability from California's Department of Insurance.

Rep. Flood criticized California's Department of Insurance for not allowing insurance companies to set prices that reflect risk accurately. He remarked, "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.'" He expressed concern about future challenges once immediate fire-related issues are resolved: "Its Insurance Department is a disaster... 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."