The Mississippi Windstorm Underwriting Association, commonly known as the wind pool, requested a rate increase of 400 percent in the aftermath of the destruction of Hurricane Katrina. In order to deal with that sharp increase Mississippi Governor Haley Barbour set aside $50 million of the federal Community Development Block Grants funds awarded to the state for hurricane recovery.
Some lawmakers say the block grant is only a short-term solution. A revenue stream from gambling would help homeowners with “long-term relief because our mortgages are going to be for 30 years, and dedicating a revenue stream from the gaming proceeds that are generated in south Mississippi is totally appropriate.”
The wind poll covers around 16,000 homeowners and was “created by the state Legislature to provide wind and hail insurance for coast property owners who could not obtain private insurance.” The number of insured for the wind pool is expected to increase as fewer private insurance companies return to the Gulf Coast.
What is your take on this issue? Do you think using gambling revenue is the right path for helping to pay for insurance rate increases?
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