Bush signs Katrina-related flood insurance bill
Posted on: Tuesday, 20 September 2005, 18:54 CDT
WASHINGTON (Reuters) - President George W. Bush on Tuesday signed legislation to increase the borrowing authority of the government's flood insurance program to $3.5 billion from $1.5 billion to pay claims from Hurricane Katrina.
The legislation increases the borrowing authority of the National Flood Insurance Program that is administered by the Federal Emergency Management Agency.
The program offers low-cost flood insurance to homeowners and small business owners in high-risk areas where it might otherwise not be available.
The program does not use government funds, but is allowed to borrow from the Treasury if necessary to pay claims.
Some analysts have expressed concern that the new borrowing authority was not enough and would have to be increased again to handle Katrina-related claims.
The National Flood Insurance Program pays up to $250,000 for residential buildings, and another $100,000 for contents that are lost. It also pays up to $500,000 for nonresidential buildings and $500,000 for their contents.
Bush also signed into law a bill to exclude federal financial assistance for flooding from being considered income, so that the recipient's eligibility for other government benefits would not be affected.
Source: REUTERS
Related Articles
- Kids in Program Once Insured Privately
- Flood Insurance Getting Political Nod
- House shores up flood insurance program
- Senate panel approves flood insurance reforms
- Senate panel to weigh flood insurance overhaul
- Congress approves more flood insurance borrowing
- US flood insurance program seeks more cash
- Bush signs law to up flood insurance borrowing
- Bush approves notes for hurricane flood insurance
 |
 |
User Comments (0)
RSS Feeds