New Bill: HR 1264

The U.S. House of Representatives is scheduled to take up a bill today that would expand that National Flood Insurance Program to include multi-peril and hurricane insurance coverage.

Rep. Gene Taylor, D-Miss., has said he sponsored the bill, HR 1264, because he thinks the federal government can do a better job and charge less for hurricane insurance than private insurers.

The bill's proponents include the National Association of Realtors. Opponents include insurance industry trade groups, a free market think tank and the Consumer Federation of America.

Bob Hunter, insurance director for the Consumer Fed, said his group supports the idea of making hurricane coverage more widely available but says the Taylor proposal would encourage more construction in hurricane-prone areas.


Hunter wrote in a letter to lawmakers:
"Moreover, requiring one of the most incompetent federal agencies in recent history -- the Federal Emergency Management Agency -- to supervise the adjustment of both flood and wind claims –– would be a recipe for disaster for many homeowners and taxpayers." 

Mike Becker, a director of the Professional Insurance Agents stated:
"Coverage for wind damage is available in the private market and through state wind pools. Adding this to the NFIP would place undue burdens on the program and would be another example of the federal government taking control of an insurance product, all while undermining the private market."