Posted on 22 Apr 2010
The National Association of Professional Insurance Agents (PIA) is encouraged by a new bill introduced in the House that makes key reforms to the National Flood Insurance Program (NFIP). The bill, tentatively titled the Flood Insurance Reform Priorities Act of 2010, is scheduled for a mark-up by the House Financial Services Committee today, Thursday April 22.
“PIA is very encouraged that Congress is finally acting on this,” said PIA National Director of Federal Affairs Mike Becker. “The need to enact comprehensive reform to the flood insurance program is well known.”
The initial draft of the Flood Insurance Reform Priorities Act of 2010 includes a five-year reauthorization of the NFIP, increases the coverage limits for policies issued under the program and does not offer wind coverage. PIA supports the five-year reauthorization as well as increasing coverage limits, but opposes adding wind coverage to the flood insurance program.
The House Financial Services Committee is to be congratulated for moving forward with this bill,” Becker said. “The NFIP provides millions of Americans with an important financial backstop, helping them manage risks and recover from flooding events. Enacting key reforms and reauthorizing the program for five years will provide needed stability in the marketplace.” Becker added that expanding the NFIP’s offerings to include commercial business interruption coverage would also be a positive step.
At the same time, PIA reiterated its opposition to the Multiple Peril Insurance Act (H.R. 1264) introduced by Rep. Gene Taylor (D-Miss.), which would add wind damage coverage to the National Flood Insurance Program. H.R. 1264 is also scheduled for a mark-up by the House Financial Services Committee on April 22.
Currently, only flood insurance is provided by the NFIP while wind perils are covered under homeowners’ insurance policies and statewide wind pools. PIA believes that combining the two perils in the NFIP would cause confusion and spur litigation.