Adding wind coverage to the National Flood Insurance Program (NFIP) will result in uncertainty as to whether losses caused by wind should be covered by a policyholder’s property policy, the state wind pool or the NFIP. That observation was shared by PIA in an article on the subject in this week’s issue of Financial Week.

Late last month, the House Financial Services Committee passed the Flood Insurance Reform and Modernization Act, which includes the measure, proposed by Rep. Gene Taylor (D-Miss.), to add wind coverage to the flood insurance program. In an interview with the magazine, PIA National Senior Vice President Patricia A. Borowski noted that some hurricanes, like Andrew in 1992, involve little or no flooding, and questioned which policy would come into play in such a situation.

“What we don’t want is for it to appear that a solution has been provided that down the road will only increase the confusion or expense to the purchaser,” she said.

Fed Flood Insurance May Get Wind Rider (Financial Week 8/6/07)

August 6, 2007