Posted on 09/29/2007 12:49:31 AM PDT by Red Steel
WASHINGTON, Sept 26 (Reuters) - The Bush administration on Wednesday threatened to veto a post-Katrina bill in the U.S. House of Representatives that would expand the federal government's flood insurance program to cover wind damage.
The bill sponsored by California Democrat Maxine Waters was expected to reach the House floor on Thursday.
Among other steps, it would add wind damage to perils covered under the National Flood Insurance Program (NFIP), set up in 1968.
The White House said in a statement it opposes adding wind coverage to the national flood program.
"Shifting liabilities for windstorm damage from the private sector to the NFIP would be fiscally irresponsible. Federal government insurance would displace insurance that is already provided by the private market," it said.
In addition, the White House said including wind damage would mean all taxpayers would have to subsidize insurance rates for people in high-risk areas.
The White House also objected to aspects of the bill that would widen the national flood insurance program's scope.
"Increasing the coverage amounts could further encourage expensive development in high-risk areas and leave the federal taxpayer with a larger debt burden following the next catastrophe," the White House added.
There is no similar measure currently before the Senate.
Lawmakers have put forward numerous proposals after three hurricanes in 2005 -- Katrina, Rita and Wilma -- killed hundreds and caused billions of dollars in damages along America's southern coastline. (Reporting by Kevin Drawbaugh, editing by Tim Dobbyn)
What? Bush passing up a chance to spend money?
Alright, what happened to our real Bush?
There are only a few areas in the country along the coasts where NFIP flood insurance is not available. Uniformly, the landowners still build—with private insurance or self-insurance—but they build smaller and less densely. The NFIP, along with massive subsidies for infrastructure maintenance and development, supports and maintains a system where the entire country pays so some people can have a bigger house on the beach.
In some cases, although the worst offenders are in riverine floodplains, the NFIP has paid to rebuild a single house over 15 times (the record as of 2000 was 18 complete rebuilds of a single house in the Mississippi floodplain). It’s requirements for limiting rebuilding and limiting access to disaster relief have been consistently waived or ignored, especially following Bush 41’s panicked expansion of federal funds following Hurricane Andrew (might have been a different hurricane, but I’m pretty sure that’s the one).
The NFIP screws up private insurance models everywhere it’s in place and has never been truly actuarial. It’s a joke that anyone would even think about expanding it further.
Why on Earth would Congress have the federal government offer wind damage insurance? It’s just plain insane. Socialism.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Maxine Waters is as dumb as a box of rocks, but even she represents a threat to the USA.
“National Flood Insurance Program (NFIP)”
Why dont we abolish this program already.
Concur. No one holds a gun to my head to live in a high risk hurricane zone. My residence took on a good amount of wind damage from Hurricane Wilma, which hit my area worse that Hurricane Andrew. But that's my problem not the governments. Government handouts only make the overall problem worse and encourage people to be irresponsible on this matter.
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