PIA submitted testimony to the Senate Banking Committee for its October 2 hearing on reforms to the National Flood Insurance Program (NFIP). PIA is on record recommending that the Senate eliminate a provision from a flood insurance reform bill (H.R. 3121) passed by the House of Representatives that adds windstorm coverage to the NFIP. Companion legislation has not yet been introduced in the Senate.

President Bush has threatened to veto a bill to reform the NFIP if it arrives on his desk with the windstorm provision included. Meanwhile, Sen. Charles Schumer (D-N.Y.), announced his support of the inclusion of wind coverage.

“The private insurance industry says, ‘No, no, no. Let us cover wind,’” said Schumer. “And they leave areas like Long Island. Gentlemen, ladies, you can’t have it both ways. You want to exempt yourself from large parts of America, certainly New York, then don’t lobby against the federal government coming in and doing it.”

Consideration of an NFIP reform bill may bump into next year in the upper chamber. During the hearing, Sen. Tom Carper (D-Del.), presiding over the hearings in place of Chairman Chris Dodd (D-Conn.), noted Congress is not required to reauthorize the program until the end of 2008, giving the Senate “plenty of time to get to work and pass a good strong bill. We have 12 months to do this job. I don’t want us to use all of that, but I’d like to see us report a bill out maybe by the early part of next year,” Carper said.

PIA Testimony on NFIP Reform to Senate Banking Committee (10/2/07)

October 10, 2007