Executive Smith Releases Hurricane Isabel Insurance Probe
 
12 Findings and Recommendations Highlighted in Larsen Report

Towson, Md (February 4, 2004) - Baltimore County Executive James T. Smith Jr., today released a report by former insurance commissioner Steve Larsen that investigates the magnitude of uncovered loss by East County residents in the wake of Hurricane Isabel.  On December 16th, Baltimore County commissioned an independent review of insurance coverage in effect at the time of the hurricane, the response of the insurance industry, and the response of relevant state and federal agencies. The report makes 12 different findings and recommendations based on interviews and surveys with flood victims, review of both Maryland and Federal insurance law and other documents.

"The Larsen Report brings a voice of clarity to the many people who are suffering in Isabel's wake," said Executive Smith.  "We now have strong recommendations to take to the legislature in Annapolis and for our federal delegation to take to Washington. As elected officials, it is our obligation to stand up for our citizens and press for fair treatment by not only the regulated, but the regulators."

Among the findings, the report shows that most homeowners will not be fully reimbursed for flood losses because of limitations in the National Flood Insurance Program (NFIP).  In addition, some homeowners were given incorrect or incomplete information about their flood claims, coverage and rights. 

The report recommends the establishment of a relief fund for Isabel victims who have experienced uncompensated losses from Isabel in addition to supporting the passage of HB3.  Finally, the report seeks clarification on the State's role in servicing NFIP policies.

The five page executive summary and 50 page report (PDF) are available on the Baltimore County website at www.baltimorecountyonline.info.

Revised February 4, 2004