Insurance

Daily Real Estate News  |  March 26, 2008Storm Brews Over Wind Insurance
The battle continues to heat up between congressional members and the insurance industry.

U.S. Rep. Gene Taylor (D-Miss.) has proposed that the reauthorization of the National Flood Insurance Program (NFIP) include wind coverage, which was passed by the House. "It was unjust at every level, for the individual and for society as a whole," he said.

The Senate's companion legislation does not include wind coverage or other enhancements supported by Taylor. According to Washington Post Columnist Jeffrey Birnbaum, it is not often that the government and an industry battle over who can efficiently run a business segment.

Insurance trade groups contend that to carve out wind insurance from traditional homeowners' insurance is senseless and would further impose upon the finances of the NFIP. Taylor, on the other hand, indicates the wind insurance provision would not tax the NFIP because coverage would be actuarially sound and "cost-free" for the government.

Source: Jeffrey H. Birnbaum, Washington Post (03/25/08)

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