Sen. David Vitter says Congress should be prepared to enact a short extension of the program
The Senate Banking Committee last week approved a five-year extension of the federal flood insurance program. Among other things, the bill allows yearly increases of 15 percent, up from the current limit of 10 percent, to bring rates up to actuarial standards.
View full sizeHurricane Katrina flood cleanup in the Maple Ridge subdivision off of Airline Drive in Metairie was photographed in December 2005. Still, it's uncertain whether the Senate bill can be reconciled with a House bill, before Sept. 30, when authorization for the flood insurance program runs out.
Sen. David Vitter, R-La., said that Congress should be prepared to enact a short extension of the program if no agreement is reached in time so there isn't a repeat of the lapses in the program that occurred last year, at times preventing home sales from being completed.
One proposal that didn't make it into the bill was a measure by Sen. Roger Wicker, R-Miss., that would give the Department of Homeland Security the authority to determine how much damage is caused by water and how much by wind.
After Hurricane Katrina, Wicker said insurance adjusters often determined that all or most of the damage was caused by water, switching the damage liabilities from the private insurers to the federal flood insurance program.
Wicker said he hopes to get the amendment added to the bill when it reaches the Senate floor. The insurance industry opposes the Wicker proposal.
Bruce Alpert can be reached at balpert@timespicayune.com or 202.450.1406. Jonathan Tilove can be reached at jtilove@timespicayune.com or 202.450.1404.
