Flood Insurance At The Brink, Congress In Conflict

By Steven Brostoff, Washington Editor

NU Online News Service, Oct. 29, 12:57 p.m. EST,Washington?Insurance agents are working to prevent anotherlapse in national flood insurance coverage as Congress rushes toadjourn.

At issue is a multiyear reauthorization of the National FloodInsurance Program. As was the case in 2002, withoutreauthorization, the program will expire at the end of thisyear.

However, there are differences between the House and Senatereauthorization bills, according to Justin Roth, director offederal government affairs for the Alexandria, Va.-basedIndependent Insurance Agents and Brokers of America.

Unless the bills can be reconciled, or a temporaryreauthorization approved, the flood insurance program will lapseagain, just as happened last year, Mr. Roth said.

Because Congress allowed the flood insurance program to expirelast year, many homeowners were concerned about whether theirproperties were covered. Congress had to pass a retroactivereauthorization in early 2003.

One of IIABA's biggest concerns, Mr. Roth said, is to make surethe program does not lapse this year.

The differences between the House and Senate reauthorizationbills relate to certain reform provisions in the House bill, Mr.Roth said.

The House Financial Services Committee, he said, approved a billaimed at targeted remediation requirements on repetitive lossproperties.

However, Mr. Roth said, some members of Congress, particularlyfrom Louisiana, are concerned about these provisions and haveprevented the bill from getting to the House floor.

At the same time, he added, there seems to be little to nointerest in the remediation provisions in the Senate.

IIABA, Mr. Roth said, has some problems with the remediationprovisions, but the most important thing is that flood insurancecoverage does not lapse.

Both the House and Senate bills, he said, would reauthorize theflood insurance program for five years, and IIABA supports amultiyear reauthorization.

But if the bills cannot be reconciled before adjournment, Mr.Roth said, IIABA will urge Congress to approve a one-yearreauthorization. This will allow coverage to continue without abreak, he said, and give Congress more time to consider theconsumer protection provisions in the House bill.

"The one thing we don't want to see is a repeat of last year,"Mr. Roth said.