House Passes Flood Bill With Wind Coverage

The House has passed a bill that would extend the National Flood Insurance Program for five years and give the policyholders the option of getting coverage for wind damage for the first time."Passage of this legislation will ensure that in future disasters, homeowners won't have to hire lawyers, engineers, and public adjusters to prove what damage was caused by wind and what was caused by flooding," said Rep. Gene Taylor, D-La. The House passed the bill by a 263-146 vote. But the Bush administration has threatened a veto because of the wind coverage. The Flood Insurance Reform bill (H.R. 3121) would phase out subsidized rates for commercial properties, vacation homes, and second homes built before 1974. It would also increase fines on lenders that do not enforce mandatory flood insurance policy purchase requirements. The Senate Banking Committee is slated to hold a hearing on flood insurance reform on Oct. 2.