House Advances Federal Flood Bill

Friday, June 30th, 2006 Catastrophe Property

The House voted 416-4 Tuesday to phase out subsidies on some vacation homes and commercial property and raise premiums at a faster rate. The bill also increases the amount of coverage a property owner can buy and boosts fines for mortgage lenders who don’t tell customers they have to buy flood insurance. The House also accepted an amendment by Rep. Gene Taylor, D-Miss., calling for an investigation into Katrina damage claims. Taylor, whose district was devastated by the hurricane, said many insurers shifted the financial burden to the government by declaring that flooding, rather than wind, caused the destruction.

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http://www.insurancejournal.com/news/national/2006/06/29/69968.htm

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