WASHINGTON—The Property Casualty Insurers Association of America (PCI) opposes the inclusion of language from H.R. 920, the Multiple Peril Insurance Act, within a larger flood reform bill, H.R. 3121, which passed the House of Representatives Thursday.

PCI believes that, while the inclusion of wind coverage within the National Flood Insurance Program (NFIP) is well-intentioned, it may produce unintended negative consequences for millions of American insurance consumers.  The association reiterates its support for a comprehensive public policy solution that supports private market initiatives, stronger building codes and land use regulations—backed up, where needed, by state catastrophe funds and limited, high-level federal financial support for responsibly managed state funds.

PCI urges the Senate to pass flood legislation that does not include the wind provision.

The above is from a  insurancenewsnet.com article click here to read the article,

WASHINGTON, Sept 26 (Reuters) - The Bush administration on Wednesday threatened to veto a post-Katrina bill in the U.S. House of Representatives that would expand the federal government's flood insurance program to cover wind damage.

The bill sponsored by California Democrat Maxine Waters was expected to reach the House floor on Thursday.

Among other steps, it would add wind damage to perils covered under the National Flood Insurance Program (NFIP), set up in 1968.

The White House said in a statement it opposes adding wind coverage to the national flood program.

"Shifting liabilities for windstorm damage from the private sector to the NFIP would be fiscally irresponsible. Federal government insurance would displace insurance that is already provided by the private market," it said.

In addition, the White House said including wind damage would mean all taxpayers would have to subsidize insurance rates for people in high-risk areas.

The above is from a Reuters article click here to read the complete article.

The U.S. House of Representatives has passed a measure updating the nation's flood insurance program that will give homeowners the option of purchasing windstorm coverage as part of their flood policy.

The legislation also reauthorizes the National Flood Insurance Program for five years through 2013, improves flood mapping, eliminates some rate subsidies, and adds business interruption coverage as an option.

H.R. 3121, the Flood Insurance Reform and Modernization Act of 2007, passed by a vote of 263 to 146.

In an effort to make the NFIP more actuarially sound, the bill phases out subsidized rates on commercial properties, vacation homes, and second homes built before 1974. Multifamily rental properties are excluded from the phase-out of the subsidy.

Additional optional policy coverage is added, allowing business owners to purchase business interruption coverage at actuarial rates. Additionally, optional coverage at actuarial rates for basement improvements and replacement cost of contents is added. For the first time since 1994, the bill updates maximum insurance coverage limits for residential and nonresidential properties.

The above is from a  insurancejournal.com article click here to read the complete article.

WASHINGTON — Fourth District Rep. Gene Taylor claimed victory Thursday in a two-year campaign to add wind coverage to national flood insurance, an effort born of problems Hurricane Katrina victims had in making insurance claims.

Taylor's proposal was included in a bill, approved on a 263-146 vote, that would reauthorize the National Flood Insurance Program for another five years. It would allow homeowners who purchase flood insurance to buy federal wind coverage as well.

Taylor, a Democrat from Bay St. Louis who has sued his insurance company over losses from Katrina, said the program is needed because many wind damage claims resulting from Katrina were denied by insurance adjusters who insisted the damage was caused by the killer storm's waters.

Taylor also won approval of an amendment to the bill that would increase flood insurance coverage limits for apartment building owners and make them eligible for federal wind coverage. The limit on flood coverage, $500,000, does not adequately cover most apartment buildings, Taylor said.

The above is from a clarionledger.com article, click here to read the full article

"TALLAHASSEE — In a case that may reduce payouts to hundreds of 2004 hurricane victims, the Florida Supreme Court ruled Thursday that insurers must only pay for damage specifically covered by their policies.

The 7-0 decision affects many homeowners who have not settled with their insurance companies over whether damage caused by Hurricanes Charley, Frances, Ivan, or Jeanne came from wind or flood waters, for which many homeowners are not insured.

The opinion will not affect residents who have already settled with their insurance companies, attorneys familiar with the case said Thursday."

Hurricane Humberto

Humberto made us landfall at around 2:00 am on the 13 th near High Island with 85 mph winds.

Humberto set the record as the only TS in history to go from a depression to hurricane as fast as it did.  Dr. Masters stated in his blog;  "Reliable record keeping of intensification rates of Atlantic hurricanes began in 1970, when regular satellite coverage became available. Since 1970, Hurricane Humberto holds the record for fastest intensification from first advisory issued to hurricane strength--18 hours. (Actually, Humberto did the feat in 14 1/4 hours, but this will get rounded off to 18 hours in the final data base, which stores points every six hours)"

I'm on my way to the area and will provide more on the damage or lack of once I get there.

Here a link to a slide show that shows some of the damage, click here.

From the nola.com article;

The title of the report, released this month by the government auditor, leaves no doubt about its findings of the Federal Emergency Management Agency's program: "FEMA's Management and Oversight of Payment for Insurance Company Services Should Be Improved."

The report also found that FEMA doesn't enforce audit requirements of the private companies that participate in the program and has no system for reviewing what information it does collect. FEMA has no idea what it actually costs private companies to run the program, and uses an outdated standard in determining how much it pays them, the report says.

In written comments on the report dated on the second anniversary of Hurricane Katrina, FEMA agreed to improve its oversight of the program, but called the GAO's comments on the flood program's expenses "inappropriate and misleading."

>> Click here to read the article <<

>> Click here to view the GAO's full report <<