R.I. lawmakers study ways to assist coastal homeowners

A group of Rhode Island legislators examining insurance companies’ recent changes to homeowners’ policies for coastal areas met recently at the University of Rhode Island’s Bay Campus to review a model of the damage that could be done by a major storm in coastal communities in Rhode Island.

At the meeting, G. Dail Rowe, senior research scientist at Accurate Environmental Forecasting Inc. of Narragansett, presented a model to demonstrate the catastrophic possibilities of a major Category 3 storm. The model focuses on one urban area — likely Newport; one suburban area — likely a community on the Narragansett Bay like Bristol or the Conimicut section of Warwick; and one coastal area such as Watch Hill or Matunuck.

Following the devastation left along the Gulf Coast by Hurricane Katrina last year, many insurers — prompted by demands by their reinsurance issuers — have changed their policies, identifying many more properties than ever before as “at risk” for hurricane damage.

Lawmakers are concerned that as a result, people who live well above sea level, sometimes several miles from the shore, are facing expensive prospects like double-digit premium hikes, deductibles of $20,000 or more, or requirements that they purchase flood insurance or make structural changes to their homes. Insurers are dropping some homes altogether, saying they represent too big a risk.

Several legislators formed an ad hoc committee to examine the matter and possibly develop legislation to protect Rhode Island homeowners from what they say might be any undue insurance costs. The ad hoc committee consists of Rep. Paul W. Crowley (D-Dist. 75, Newport), Rep. Brian Patrick Kennedy (D-Dist. Dist. 38, Hopkinton, Westerly), Rep. Peter L. Lewiss (D-Dist. 37, Westerly), Rep. John Patrick Shanley Jr. (D-Dist. 35, South Kingstown), Rep. Donald L. Lally (D-Dist.33, Narragansett, North Kingstown, South Kingstown), Rep. Eileen S. Naughton (D-Dist. 21, Warwick), Rep. Kenneth Carter (D-Dist. 31, Exeter, North Kingstown), Rep. J. Russell Jackson (D-Dist. 73, Newport, Middletown), Representative-elect Donna Walsh (D-Dist. 36, Westerly, South Kingstown, New Shoreham, Charlestown)

“This is a long, involved process, but we feel that if we are to learn more about severe storms, we need to learn through an extreme model to observe the catastrophic level of destruction that one of these storms could inflict on Rhode Island,” said Rep. Crowley.

The committee is looking for a consultant to examine the potential damage a Category 3 storm could do.

The committee has also been drawing on the expertise of several professors at the University of Rhode Island.

The ad hoc committee expects to complete a report for use by a full-fledged legislative commission that is expected to be appointed when the 2007 legislative session begins. Rep. Brian Patrick Kennedy (D-Dist. 38, Hopkinton, Westerly), who leads the House Corporations Committee, is expected to be named chairman.

“We wanted to make sure that we have time to do all the necessary research and develop effective solutions this session, so Rhode Island homeowners will see relief as soon as possible,” said Rep. Shanley.