Effort to Add Wind Coverage Fizzles

Washington — An amendment to add wind coverage to the National Flood Insurance Program (NFIP) was defeated in the Senate by a vote of 73-19. The action contrasts an overwhelming vote in the House last September in favor of wind coverage.

The vote came on the heels of a report from the General Accounting Office that said adding wind coverage to the NFIP would present challenges to the Federal Emergency Management Agency and could expose taxpayers to high costs.

“Private insurers remain able to cover homeowners and businesses in the path of potential storms through the private market,” says Marc Racicot, president, American Insurance Association.  “Adding wind coverage to the federal flood insurance program is not needed, given that there is adequate wind coverage capacity in every state through either the traditional private market, or state residual markets backed by private insurers.”

Source: American Insurance Association