MBA Worried by Property Insurance Cost Spike

Natural disasters caused "a stunning $89 billion" in privately insured catastrophic losses in 2004 and 2005, and property insurance premiums have risen "from 100% to over 600%" in some coastal areas that are vulnerable to hurricanes, according to the Mortgage Bankers Association.In a white paper on natural disasters and catastrophic insurance, the MBA said there is an insurance availability and affordability crisis in some states that is also affecting commercial mortgage borrowers, lenders, and servicers. The MBA hopes the white paper will spark discussion about finding solutions to promote access to property insurance at affordable prices, MBA vice chairman Kieran Quinn said. The association can be found online at http://www.mortgagebankers.org.