House to Hold Hearings on Hurricane Insurance Practices Next Week

Congress is planning further exploration of the federal government’s flood program and private insurance practices following the hurricanes of 2005, including the settlement of wind vs. water claims.

U.S. Representatives Melvin L. Watt, D-N.C., chairman of the Financial Services Subcommittee on Oversight and Investigations, and Christopher P. Carney, D-Pa., chairman of the Homeland Security Subcommittee on Management, Investigations and Oversight, thave scheduled a hearing for on Tuesday, June 12, 2007.

The chairmen said their subcommittees will specifically examine the National Flood Insurance Program, the interaction between the NFIP and private insurers and the allocation of wind vs. water insurance claims in light of preliminary findings from Government Accountability Office and Department of Homeland Security, Inspector General reports.

“It is clear that the 2005 hurricanes (Katrina and Rita) exposed serious flaws in the insurance coverage and claims adjustment processes. This second hearing will continue responsible efforts by Congress to get the facts we need to insure that those flaws are corrected and that victims of future catastrophes are better protected,” said Watt.

“Congress must ensure that every flood victim receives prompt and fair reimbursement for storm damage to their home,” Carney said. “While the National Flood Insurance Program needs to be responsive when assessing damage and paying out claims to flood victims, it must also conduct better oversight to ensure that it’s not being abused by its private insurance partners.”

Source: House Committee on Financial Services