South King County lawmakers are working with businesses to address the flood insurance crisis in the Green River Valley.
Although the federal government, through FEMA, provides subsidized homeowners flood insurance and limited business coverage, many companies are reporting that the private insurance policies, known as “surplus lines,” have been canceled or cannot be purchased at an affordable cost. There are concerns that flood fears and intense media coverage have exacerbated the problem.
The mayors of Kent, Auburn, Pacific, Algona, Tukwila, Senate Majority Floor Leader Sen. Tracey Eide, Sen. Margarita Prentice, Sen. Claudia Kauffman, Rep. Tina Orwall and Rep. Dave Upthegrove participated in a discussion organized by Sen. Karen Keiser (D-Kent) on possible solutions.
The crisis is creating severe economic hardship and is damaging the economic climate of the region’s largest manufacturing and distribution center. Several individual business owners shared their concerns at the meeting. Many businesses have millions of dollars in manufacturing equipment installed in buildings near the potential flood area.
One proposal involved legislation to give the state insurance commissioner authority to create a “joint underwriting association” to address this crisis. The insurance commissioner would appoint a board to set premiums and offer flood coverage to the businesses in the flood plain. The JUA would then function as a not-for-profit insurer of last resort. The JUA would be dissolved after the problems with the Howard Hanson Dam are repaired and flood coverage is again available to businesses in the area, which could take three or four years.
“The Green River Valley is the second largest wholesale distribution center in the West Coast,” said Keiser who represents part of the Valley. “Current insurance caps won’t begin to cover some of the losses. These businesses need help now.”
“It is important for us to quickly step in to address the needs of businesses in our community during this challenging time,” said Rep. Orwall. “I look forward to championing this effort in the House.”
Mayor Pete Lewis said urgent action is needed to calm business anxiety and provide affordable insurance.
“This tough recession is already a challenge for our business community and our cities,” Lewis said. “This problem is making it almost impossible for many key employers to conduct normal business activities.”
