Congress Eyes Flood InsuranceReforms

WASHINGTON - (11/15/05) -- The House Financial ServicesCommittee is expected to debate several changes to the NationalFlood Insurance Program Wednesday, including an increase ininsurance coverage, as part of a proposal to increase funding forthe program. Among the measures being considered as part of atripling in funding to $8.5 billion are: an increase in maximumcoverage form the current limits of $250,000 per residential and$500,000 per commercial structure; an ability purchase more thanthe $100,000 coverage for internal furnishings; a base amount forliving expenses; and optional coverage for interruption ofbusiness. Reform of the FEMA-run program, the only nationwideprovider of flood insurance, has become a critical issue inCongress, which is working to cope with the billions of dollars inflood damage caused by hurricanes Katrina, Rita, and more recently,Wilma.