Senate rejects wind insurance amendment

WASHINGTON – A Gulf Coast-backed effort to add wind coverage to the National Flood Insurance Program was soundly defeated Wednesday in the Senate amid concerns it would be too costly.

The drive to add the amendment to the flood insurance bill failed, 73-19. Opponents said they were leery of the cost and opposed federal intervention in private markets.

Sen. Chris Dodd, D-Conn., who chairs the Senate Banking Committee, urged a vote against the amendment but said he was “determined to come up with some answers” on providing affordable insurance to homeowners in disaster-prone states.

“Wind is an issue we have to grapple with, but the last thing we want to do is destroy a flood program, which we very well could by overwhelming it,” Dodd said.

Gulf Coast lawmakers pleaded for relief, saying homeowners in their states were finding it increasingly difficult to afford, or even find, insurance.

“People who have paid every premium and have never filed a claim are simply locked out of the market,” said Sen. Mel Martinez, R-Fla.

The White House has already said it would veto any bill that contained the provision.

The House last fall passed legislation that would add wind coverage to the flood insurance program, but Dodd said the wind clause could carry unknown costs.

“It’s not that we disagree – it’s a legitimate issue,” Dodd said. “But this amendment could end up costing us billions more than we anticipate. We don’t have any idea.”