Washington – A Bill to revamp the National Flood Insurance Program has left the Senate Banking Committee and is set for the floor. To the delight of many, the Senate version does not add coverage to wind losses to the program.
“AIA is pleased that the Senate Banking Committee approved legislation that will put the NFIP on a firm financial footing and will not include federal wind coverage as part of the NFIP reforms voted on today,” says American Insurance Association (AIA) president Marc Racicot. “We have steadfastly opposed the inclusion of windstorm coverage in the House version of this legislation and will continue to oppose adding wind as the House and Senate deliberate on this legislation.”
“Adding wind coverage would result in a dramatic expansion of the NFIP–with the potential for huge deficits–and a fundamental realignment of both the NFIP and the private wind insurance market," Racicot continues. "It would also encourage building in hurricane-prone regions, putting more people and property in the path of devastating storms.
“We believe the solution rests in improving, not displacing, the private sector's ability to provide wind coverage to homeowners and businesses in the path of potential storms," he says. "Our preference is to preserve the global spread of risk through private insurance mechanisms in any ultimate evolution of this legislation.”
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