House Bill Would Boost Flood InsuranceFunds

WASHINGTON - (03/17/06) – Individual coverage limits onflood insurance would be raised to new levels under a bill approvedThursday by the House Financial Services Committee. The bill wouldraise individual coverage under FEMA’s National FloodInsurance Program on residences from the current $250,000 to$335,000; and for non-residential properties from $500,000 to$670,000. It would also add to basic coverage money to financeliving expenses when someone is flooded out of their home. The billwould also raise the fines levied to lenders for noncompliance withflood insurance purchase requirements from $350 to $2,000 perincident. The measure will also increase funding for the floodinsurance program for a third time since the massive floodingfollowing Hurricane Katrina last September to $25 billion. Theavailable funding was a mere $1.5 billion before the massive storm.The bill must now go to the full House for a vote, then to theSenate for action.