Rep. Gene Taylor (D-MS) has introduced H.R. 920, entitled the "Multiple Peril Insurance Act of 2007," to the United States House of Representatives in response to the denial of claims from Hurricane Katrina due to wind loss. The purpose of H.R. 920 is to expand the scope of the National Flood Insurance Program from only offering insurance for flood losses to offering insurance for wind losses as well. The bill would allow multiple peril policies to be issued in areas where the local government adopts and enforces new building codes designed to minimize wind damage. Any structure in violation of state or local building codes would be prohibited from coverage. The bill also prohibits duplication of coverage, such that a structure may not have both a multiple peril insurance policy and a flood insurance policy. The policy limits currently set by H.R. 920 for residential properties are $500,000 for structures and $150,000 for contents and loss of use, and for commercial properties are $1,000,000 for structures and $750,000 for contents and business interruptions. The bill is now set for consideration by the House Committee on Financial Services today, July 17. We will monitor the Congressional developments and provide updates on InsureReinsure.com.
Click here to read the text of the bill.