John Egan
Home at United States July 12 adopted a law that would extend the life of the National program of insurance for five years while also progressively subsidized flood taxpayer of insurance premiums and opening the way for private companies sell flood insurance.
Supporters say that HR 1309 could strengthen the finances of the flood insurance program, which is almost 18 billion dollars in debt, mainly due to the payments of insurance against the floods of Hurricane Katrina.
The 406-22, the House vote sent the Flood Insurance Reform Act of 2011 to the Senate of United States. If the Bill is not signed by 30 September, the flood insurance program expires.
U.S. Rep. Judy Biggert, R - ill., who introduced the Bill, said the National flood insurance program "" is too important to leave the forfeiture and too much debt to continue without reform. ""
Among other things, the Bill would be:
? Premiums phase that reflect more accurately the risk of flooding of a property.
? Raise the cap on the annual premium increases 10% to 20%. Some members of the House struggled in vain to maintain the 10 per cent cap.
? Reduce federal subsidies for certain insured properties, including buildings in high-risk flood areas to which insurance claims against repeated flooding.
Limits the maximum coverage of the link ? the rate of inflation.
Floridians hold 40% of the policy
More than 5.6 million policyholders, including millions of owners, participate in the National Flood insurance program. Forty percent of the subscribers of the program are in Florida. The Federal Emergency Management Agency runs the program.
Act federal flood insurance is mandatory if you have a mortgage supported by the Federal Government for a house or other structure in an area designated by the Federal Government in high-risk flood. Standard home insurance policies and other types of property do not include coverage of the floods.
The private flood insurance market is practically non-existent. The reform bill would open the way for private insurers more to sell flood insurance policies. "The result will be increased consumer choice and competition, and it will prevent the Federal Government to the exponential expansion of its role in the insurance, disaster," says U.S. Rep. Spencer Bachus, R - Alabama, Chairman of the House Financial Services Committee.
The House killed an amendment to the Bill by representative of the U.S. Candice Miller, R-Mich., which would have eliminated the National flood insurance program.
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