WASHINGTON - with the rising Missouri River threatened communities South Dakota, Senators push to change the National Programme of flood of insurance significantly before agreeing to extend.
The program, heavily in debt and huge costs this year, should be overhauled, Senator Tim Johnson, D - s., said Thursday at a Bank meeting of housing and Committee on Urban Affairs that he led.
"As the people of South Dakota and others have seen their eyes, floods are responsible more than damage and economic loss than any other type of natural disaster," Johnson said. "The recent floods makes clear that Congress must authorize again and reform (program), which is defined at the end of this year on September 30."
The hearing came one day after Senator John Thune, R - RTI, met with major-General Bo Temple, General with the U.S. Army Corps of Engineers, to speak about floods in Commander South Dakota Assistant. Senator relayed the concerns of residents, he spoke last week in stone, stone Fort and Dakota Dunes and said Temple he asked that the body "flexible and attentive" when responding to the situation, the Thune AshLee Strong spokesman said.
The House approved a measure that would extend the five-year flood insurance program. But the House and the Senate were able for years to agree on an extension to longer term.
The program has been temporarily extended many times, and it is likely Congress could do so again if no agreement in the long term. But the problem with temporary extensions is that they hinder sales and construction projects because of the uncertainty about the fate of the program. Flood insurance is often a requirement for the mortgages on property in a floodplain.
Created in 1968, because private insurers could not handle the enormous risk, the program helps owners, companies and tenants in communities of more than 20 000 to flood supported by the Federal Government to insurance. But the program is about 18 billion dollars in debt, largely because of losses by the hurricanes Katrina and Rita, and Wilma.
The program collects approximately 3.3 billion dollars annually, an amount calculated to cover the losses of each year. The Government Accountability Office found that premiums are heavily subsidized.
"All aspects of the program must undergo a major revision to enable it to survive and continue on a sustainable path," Senator Richard Shelby said at the hearing. Shelby is the top Republican on the Committee.
He wants that the wealthy Americans to pay the full cost of their insurance and the said mapping of areas at high risk should be updated.
Senator Roger Wicker, R - Miss, said that the program should charge and realistic premiums to cover the losses and do a better job to ensure that owners who are required to obtain insurance against floods follow and get it.
And Republican Senator David Vitter of Louisiana called for a ceiling higher than on policies, noting that many homes is a value greater than the limit of $250,000 on federal insurance coverage.
Craig Fugate, administrator of the Federal Emergency Management Agency, said Government might not be the solution to the problem that Vitter cited on insurance of the property of great value. Fugate, whose agency oversees the program against the floods, said private insurers may wish to cover more than $250,000 if the Government provides less than the loss coverage.
"We recognize that the insurance program against floods, particularly for homes that enjoyed both, insurance did not cover the replacement value," said Fugate.
It is not clear whether legislators will agree on how to improve the program before its expiry on 30 September, although Johnson sounded optimistic.
"I hope that we can once again come together and pass a bipartisan bill that will help build a sustainable future for the program and American citizens", he said.
An obstacle to extending long-term flood insurance program has been a dispute on the question of whether the program should cover damage from wind as well.
Wicker a Bill which would add such coverage, a response to Hurricane Katrina in 2005.
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