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Congress Concentrates on Several Property Insurance Proposals

Congress is working on several legislative proposals related to homeowners insurance issues. The Senate Banking Committee has approved an amendment to a bill authorizing...
August 6, 2007

Congress is working on several legislative proposals related to homeowners insurance issues.  The Senate Banking Committee has approved an amendment to a bill authorizing extension of the National Flood Insurance Program that would create a commission on risk management and insurance.  The commission would consist of experts in insurance, emergency management, structural engineering and the environment who would recommend ways to provide relief for homeowners in storm prone areas. 

Meanwhile, the House has approved an amendment to an appropriations bill for commerce, justice and science programs that would provide $1.9 million for the National Windstorm Impact Reduction Program to research ways to reduce the impact of storms, such as the use of wind-resistant building materials. 

The House Financial Services committee has approved a bill to include windstorm coverage under the federal flood insurance program.  Also, two Florida representatives are preparing legislation to create a national catastrophe insurance fund that would offer federal homeowners coverage by the 2008 hurricane season.  The plan would provide a federal backstop to cover costs over a set amount in the aftermath of a natural disaster so that insurers could lower homeowners premiums.