U.S. Senate dips toe into flood insurance overhaul
By Kevin Drawbaugh
WASHINGTON, Oct 2 (Reuters) - A U.S. Senate panel inched toward reforming federal flood insurance on Tuesday, amid broad agreement that better flood maps are badly needed and with at least one senator backing a plan to add wind damage coverage.
The House of Representatives last week voted to overhaul the almost 40-year-old National Flood Insurance Program, which was badly crippled by the 2005 hurricanes, including Katrina and Rita that caused billions of dollars in property damage.
The House bill would expand the flood program to cover wind damage, a response to outrage among some Gulf Coast homeowners over insurers' refusal to pay claims for hurricane damage. Many disputes over coverage centered on wind versus water damage.
Insurers are lobbying hard to block a wind expansion to the program, arguing it would crowd them out of a viable business. The Bush administration has pledged to veto the House bill.
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