A proposal to expand the program to include wind coverage is not likely to move through this year
The U.S. Senate Banking Committee takes another shot next week at a long-term reauthorization of the National Flood Insurance Program.
View full sizeThe toll of wind damage from Hurricane Katrina is seen in this photo of the Woodmere subdivision in Harvey taken December 17, 2005. Congress has considered a number of changes in the program over the years, but most have been beaten back. Among them: a proposal to expand the program to include wind coverage.
That proposal, which came after many residents of Louisiana and Mississippi complained that their home insurance carriers rejected their claims after Hurricane Katrina, isn't likely to move through this year because of continued strong opposition from the insurance industry and their backers, including some key leaders of the Banking Committee and the Obama administration.
The president's budget officials have raised concerns that adding wind coverage could be expensive at a time the flood insurance program is already heavily in debt. There have also been proposals to significantly raise premiums for people with repetitive claims, particularly owners of expensive beachfront properties that flood regularly, but that's also been a hard sell.
Louisiana lawmakers continue to fight to keep premium increases reasonable, arguing that in many Louisiana communities, flood insurance isn't an option, but a necessity and a requirement.
Bruce Alpert can be reached at balpert@timespicayune.com or 202.857.5131. Jonathan Tilove can be reached at jtilove@timespicayune.com or 202.857.5125.