US flood insurance renewal passes key test
The US National Flood Insurance Program (NFIP) has had a win after Congress agreed to its renewal in a key test vote.
The vote is expected to see the program extended through to 2013, with a $US17 billion ($18.1 billion) NFIP debt held by the Federal Emergency Management Agency (FEMA) since Hurricane Katrina in 2005 being forgiven.
FEMA manages the home flood insurance program, which is due to run out at the end of September unless Congress votes for its renewal.
But the Senate has rejected a provision to add coverage for wind damage, with insurers voicing concern in a congressional report that taxpayers could be exposed to high costs.
A final vote on the bill is expected this week.
The vote is expected to see the program extended through to 2013, with a $US17 billion ($18.1 billion) NFIP debt held by the Federal Emergency Management Agency (FEMA) since Hurricane Katrina in 2005 being forgiven.
FEMA manages the home flood insurance program, which is due to run out at the end of September unless Congress votes for its renewal.
But the Senate has rejected a provision to add coverage for wind damage, with insurers voicing concern in a congressional report that taxpayers could be exposed to high costs.
A final vote on the bill is expected this week.