In July 2007, Rep. Maxine Waters (DCalif.) introduced H.R. 3121,The Flood Insurance Reform and Modernization Act of 2007 in theHouse of Representatives. The bill, which would have authorizedNFIP through 2013, passed the Financial Services Committee and thefull House in just two months and was sent to the Senate forapproval. When the bill arrived in the upper chamber, significantdifferences began to surface.

Among the most controversial proposals included in the Houseversion was its provision allowing NFIP to begin offering windstormcoverage in both personal and commercial multiperil policies. Thewind provision was championed by Rep. Gene Taylor (D-Miss.), whosedistrict, which includes Gulfport, Miss., has suffered fromhurricanes in recent years.

The Senate took up the bill in May of this year, deleting thewind provision and forgiving more than $17.5 billion that NFIPborrowed in the wake of the devastating 2005 hurricane season. Andthere are other differences, too. In an attempt to phase outpremium subsidies, the Senate bill would allow premium increases ashigh as 25 percent annually, while the House bill would cap hikesat 15 percent.