The Senate Banking Committee has approved a version of the Flood Insurance Reform and Modernization Act of 2007 (the “Act”), which will now go to the entire Senate for a vote. The Act, which extends the National Flood Insurance Program (“NFIP”) through 2013, has several major differences from the House of Representatives’ version we previously reported about here.
Unlike the House’s version, there is no optional windstorm coverage, no increase in the maximum coverage limits, and no business interruption coverage or additional living expenses. Reactions to the Senate’s version have been mixed, as insurers are in favor of legislation as worded, while agents would like to see increases in the maximum coverage limits and the inclusion of business interruption coverage or additional living expenses. Support for the optional windstorm coverage has come mainly from legislators rather than those in the insurance industry.
We will continue to monitor NFIP-related developments and provide updates at InsureReinsure.com