flood insurance

Congress panel backs flood insurance overhaul

(Reuters) - A bill to overhaul the troubled National Flood Insurance Program, which covers more than five million homes and businesses in flood-prone areas, was approved on Tuesday by a congressional committee.

The bill, if approved in the full House and Senate, would reauthorize the program for five years and delay implementation of new rate maps for flood zones so homeowners newly included in a flood zone do not face an immediate new insurance cost.

The bill also calls for a range of administrative changes meant to make the program function more efficiently, said Democratic Representative Maxine Waters, who chairs a subcommittee that has worked on the issue.

“The focus on NFIP should be on providing coverage for those vulnerable to natural disasters, not to subsidize the wealthiest Americans, so we are phasing out premium subsidies for second homes and vacation homes, which will save the program a lot of money,” Waters said in a statement.

The bill was approved by the House of Representatives Financial Services Committee, of which Waters is a member.

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