Saving the Flood Insurance Program

Congress' flood-insurance debate could have big ramifications for homeowners' insurance bills, and it's putting coastal residents at odds with an assortment of groups opposed to adding wind-damage coverage.

Lawmakers are wrangling over reforms for a federal program that is badly in debt and badly needed by the 47 million people living in Hurricane Alley. President Bush must sign into law a new or modified version of the National Flood Insurance Program, by Sept. 30, the date at which it's set to expire.

One major stumbling block to passing the bill through Congress has been whether to add wind policies to the program, which now covers only flood damage. The topic is scheduled for another congressional debate as early as Tuesday, and many people following the debate expect a decision to be made before the Memorial Day recess.

The legislation that passes will likely extend the program for at least five years, shore up losses with higher premiums and phase out subsidies for commercial property, vacation homes and other nonprimary residences. It might also raise coverage limits and, perhaps most importantly, add coverage for wind damage. ...