The head of the Property Casualty Insurers Association of America said the group supports the Obama Administration’s stance on omitting wind coverage from the National Flood Insurance Program.

Department of Homeland Security Secretary Janet Napolitano recently sent a letter to Rep. Barney Frank (D-Mass.), chairman of the House Financial Services Committee, indicating that the administration “strongly opposes” adding the coverage, according to Reuters.

In the letter Napolitano indicated that the administration “opposes extending the federal government’s role and increasing its liability for an insurance program that is readily available in the private sector and through state insurance plans … Voluntary federal wind coverage would create significant problems,” Reuters reported.

The NFIP covers millions livening in areas prone to flooding and was recently extended through Sept. 30 by President Barack Obama. The program was due to expire in March.

Napolitano also indicated that the administration favors forgiving the 40-year-old program’s $19.2 billion debt, Reuters said, citing her letter.

David Sampson

David Sampson said the PCI, representing more than 1,000 companies that write 36% of the U.S. property-casualty market, supported the government’s view.

“We are very pleased that the Obama Administration has reviewed this issue carefully and arrived at the same conclusion that PCI has held from the start: adding wind coverage to the NFIP is unworkable and unnecessary,” Sampson said in a statement. “The administration has taken the right position and demonstrated a thorough understanding of this vital issue. It has articulated a proper balance between concern for taxpayer dollars and maintaining the private marketplace, while ensuring consumers have choice and availability.”