By Silla Brush - 07/21/10 08:16 PM EDT
President Obama said Wednesday he opposes an effort by Rep. Gene Taylor (D-Miss.) to expand the federal government’s role in wind insurance coverage.
The White House said in a statement that Taylor’s bill, which has 22 cosponsors, is unnecessary and could cost insurance consumers more in the end.
“The insurance offered through a federal program may not be any less expensive, and could be more expensive, than what is currently offered by private insurers and/or by states,” the administration said in a statement. Taylor’s bill would expand the government’s National Flood Insurance Program (NFIP) to add additional forms of insurance coverage. Taylor has argued that the legislation would reduce the ultimate cost of future hurricanes and other disasters.
“Expanding NFIP to cover windstorm insurance would unnecessarily duplicate available insurance products and could “crowd out” such products where they are offered, while offering little to no savings to the American public. At a time when the NFIP is already facing serious challenges, the administration cannot support such an expansion,” the White House said.