The Obama Administration, through the Office of Management and Budget, has reiterated its position that it is against the expansion of the National Flood Insurance Program (“NFIP”) to include coverage for windstorm damage. We previously wrote about the Obama Administration’s position on the NFIP last year. The timing of the announcement coincides with Rep. Gene Taylor’s (D.-Miss.) Multiple Peril Insurance Act (H.R. 1264) that is being considered in the U.S. House of Representatives this week. Among the reasons for the Administration’s opposition to H.R. 1264 are that it believes “expanding NFIP to cover windstorm insurance would unnecessarily duplicate available insurance products” and that “[a]t a time when the NFIP is already facing serious challenges [regarding reauthorization], the Administration cannot support such an expansion.” For additional information regarding Congress’s recent struggles in keeping the NFIP active, click here.

We will continue to follow this issue and provide further updates on InsureReinsure.com.