Bush vows veto of U.S. House flood insurance bill

Wed Sep 26, 2007 5:05pm ET

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.

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