Tuesday, 6 May 2008
U.S. Senate Considers Adding Coverage For Wind Damage To Flood Insurance Program
UPDATE: The Senate rejected the bill to include wind insurance coverage in a vote of 73 to 19.
In the beginning of this year, the National Flood Insurance Program was reauthorized by the U.S. Senate.
The flood program was created in 1968, and lets home and business owners buy flood coverage from the federal government if they are in areas with high flood risk.
Now, lawmakers are considering adding insurance coverage for wind damage as an amendment to the 40-year old flood program.
“Catastrophic coverage in the event of a hurricane should be seamless. Property owners shouldn’t have to go to court to fight over whether it was wind or water that destroyed their home or business,” said U.S. Senator Roger Wicker.
Private insurance companies voiced concerns that adding wind insurance would mean competition from the federal government. The chairman of the Senate Banking, Housing and Urban Affairs Committee, Senators Christopher Dodd and Richard Shelby agreed.
The White House has also indicated that the amendment would be vetoed.
But the amendment — already approved by the U.S. House of Representatives — is schedule to soon go the Senate floor for a vote.
Technorati Tags: National Flood Insurance Program wind insurance homeowners insurance flood insurance
