CCP has five key pieces. First, it requires that states enforce tough building codes and appropriate land-usage planning. Second, it rewards homeowners who preventively mitigate their risks. Third, the partnership allows private insurers to reflect the true risk in their insurance rates. It also provides federal reinsurance for extreme one-in-100-year storms. Lastly, CCP supports publicly funded assistance to low-income coastal homeowners who cannot otherwise afford corresponding rate increases.

We believe that homeowners will be best served by an active private insurance market with different companies vying for their business. To that end, creating a healthy, competitive market is the ultimate goal of this plan.

The plan advocates, among other things, more involvement from private insurers. This seems to go against the trend of shifting high-risk policies to government-run insurers like Citizens in Florida. How do you justify this?

Any real solution starts with a stable, expanding private insurance market. We want to see risk assumed by private insurers, like The Hartford, and consumers who are exposed to hurricanes — not by taxpayers who live out of harm's way.

As many coastal homeowners are all too aware, insurance costs in hurricane-prone areas have risen. In an effort to aid homeowners, some states have pursued policies that undermine the stability of the private insurance market. The result is that taxpayers are increasingly exposed for the cost of recovery.

What role do more stringent building codes play in your plan?

Coastal states are central to the partnership. For certification in the program, they would need to reduce potential costs from major hurricanes. This includes adopting and enforcing building codes in addition to managing coastal development and formulating adequate disaster preparedness and recovery plans.

In high-risk areas, homeowners can reduce losses from catastrophes by preparing now. This means building homes that can withstand extreme weather and retrofitting existing homes for the future. Everyone saves when homeowners are prepared, so states and insurers should provide incentives for homeowners to take these precautions. In addition, homeowners in coastal flood zones should be required to purchase federal flood insurance to cover damages from flooding.

The plan also asks lawmakers to affirm policy language when lawsuits are filed by claimants. Why is this important?

Policies are legal agreements that insurers make with homeowners, so it's essential that the terms of those agreements be consistent and reliable for all parties involved. By affirming state-regulated policy language, lawmakers reinforce the contractual integrity of insurance policies and promote stability of the private market following a major event.