Archive for the ‘flood insurance’ Category

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Red River Flood Protection Plan to Stay on Original Course

May 28th, 2010 by Iris | Comments Off | Filed in flood insurance

The Insurance Journal is reporting that the group studying the Red River diversion project in the Fargo, ND and Moorhead, MN area has decided to stay with its original plan, despite that fact that it may not offer the level of flood protection initially claimed.

Comprised of officials from both sides of the river, the Metro Flood Study Work Group had voted three months ago to endorse a 35,000 cubic feet-per-second channel on the North Dakota side of the river. Originally, that $1.46 billion project was expected to provide flood protection to a 500-year flood level, but more recent estimates from the U.S. Army Corps of Engineers show different data, with the possibility of higher river levels.

Aaron Snyder, the Corps project manager, explained to the group that a larger diversion study could take up to two months, and would “pretty much guarantee” that the group would miss the December deadline for Congress, but added that it may be possible to increase the scale of the project after Washington has granted its approval. “Right now, it’s important to move forward. There’s options to go bigger later,” Snyder said.

The last two springs have seen areas residents fighting massive floods, including 2009’s record-setting crest which damaged hundreds of homes and forced thousands of people to evacuate. Last summer, Fargo, ND voters indicated their support of the flood protection project, by voting for a half-cent sales tax increase, to offset the local share of the project’s cost. The preliminary estimates had the federal government paying $886 million, which left the other $626 million the responsibility of local authorities.

The corps is under an extremely tight timetable because Congress is expected to approve a major water projects bill – the first since 2002 – next year.

The corps is under a tight timetable because Congress is expected to approve a major water projects bill next year, the first since 2002.

“We want to stay on task and stay on time,” said Kevin Mahoney, Fargo’s deputy mayor.

Snyder said that the group had planned a discussion of the feasibility study and environmental impact statement on the North Dakota project, but the report was been delayed a week. The report in question will outline the project’s scope. Using current estimates, the plan as it stands now would provide flood protection “in excess of 100 years,” he explained. City and county leaders, however, are adamant about wanting 500-year protection.

“Things can always change,” Snyder said. “The U.S. Congress can always authorize something different as we move forward.”

It is not known if this project will impact flood insurance requirements for communities along the river.

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NHC Begins Tracking First Storm of the Season – Before Hurricane Season Officially Starts

May 26th, 2010 by Iris | Comments Off | Filed in flood insurance

The official beginning of the 2010 Atlantic season is still a week away, but according to Reuters the The U.S. National Hurricane Center has already begun tracking the first low pressure system of the year, reminding commodities and energy traders to be prepared for the hurricane season, which begins June 1 and ends November 30.

On Sunday, the NHC started tracking the non-tropical low which was then about 475 miles southwest of Bermuda. By Monday morning the storm was producing disorganized rain showers and thunderstorms over a large portion of the southwestern Atlantic Ocean.

According to storm trackers, the system has a medium chance (30%) of becoming a subtropical cyclone in the next 48 hours, as it moves north-northwest toward the Gulf of Mexico, and away from Florida, at a slow pace.

The official 2010 hurricane season forecast will be released by NOAA (the U.S. National Oceanic and Atmospheric Administration) on Thursday. This forecast is watched by the energy and commodity markets for signs of any potential disruptions to oil and gas installations in the Gulf of Mexico, due to weather during hurricane season.

Even though the official forecast has not yet been made public, many meteorologists are predicting that this year will bring an “unusually destructive” hurricane season, which could significantly impact efforts to clean up BP’s oil spill in the Gulf of Mexico.

State officials in Florida, Louisiana, and Texas are urging home- and business owners in coastal areas to confirm that adequate flood insurance and hurricane protections are in force before anything happens.

Some meteorologists have already predicted conditions are ripe for an unusually destructive hurricane season, which could also disrupt efforts to clean up BP’s oil spill in the Gulf of Mexico.

Commodities traders also watch for storms that could damage agriculture crops such as citrus and cotton in Florida and other states along the coast to Texas.

In addition, the path of a storm can affect pricing of insurance-linked securities, which transfer insurance risks associated with natural disasters to capital markets investors.

Read more: http://www.insurancejournal.com/news/national/2010/05/25/110138.htm#ixzz0p61XSa3p

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FEMA Discounts Flood Insurance for Homeowners Affected by Remapping

May 24th, 2010 by Iris | Comments Off | Filed in flood insurance, insurance news

Homeowners across the United States who are concerned that they may be required to purchase flood insurance due to a recent push to redraw floodplain maps can relax a little; they’re being offered the mandatory coverage at a deep discount for two years.

Senator Dick Durbin of Illinois said recently that the Federal Emergency Management Agency(FEMA)’s decision to offer lower rates on properties affected by changes to the flood maps significantly reduces the financial impact to property owners in southwestern Illinois and other affected regions, at least for now.

FEMA has agreed that up to two years’ eligibility for the National Flood Insurance Program’s lowest-priced option, the Preferred Risk Policy, will be offered to small businesses and homeowners on any land that falls into the newly designated special flood hazard areas. Once the redrawn maps take effect – either this fall or early next year – those rates will be available.

The savings provided by the special rates are not insignificant. The yearly premium for a homeowner under the preferred risk program is around $300, as opposed to the $1,200 – $1,500 premium they might pay otherwise, said Les Sterman, an administrator of a flood-protection district that includes three Illinois counties near St. Louis.

Sterman said that the lower premiums, “… are quite reasonable, and everyone in the area should buy insurance at those rates. It’s considerable relief to a point, obviously.” He also warned that larger companies will still have to shop the open market for their coverage, at a price he estimates to be about $30 million/year in his region.

In a statement to the press, Senator Durbin said that FEMA’s decision was “…only a temporary solution…” ensuring that homeowners “…will at least be financially protected at an affordable price in the event of a flood.” He said that the long-term solution is “… to bring the levees into a good state of repair.”

For the last six years, FEMA has been working on modernizing their maps, including digitizing levee locations in order for crisis handlers to have instant, electronic access to information about man-made hazards. In the aftermath of 2005’s Hurricane Katrina – and the resultant sharp criticism of FEMA and the Army Corps of Engineers with regard to the levees in New Orleans – the organization grew bolder, offering a lesson about getting serious in fixing the levees.

Currently, FEMA is assessing whether levees can handle a baseline 100-year flood – that’s an inundation so large that there’s only a 1 percent chance of such a flood in any given year. This scenario is FEMA’s threshold for classifying an area as “high risk.”

The agency’s effort has caused angst in many of the country’s levee-protected areas, including Sterman’s district, where there are 64 miles of post WWII levees that were built to weather a 500-year flood – one with a .02 percent likelihood of happening in any given year.

The Army Corps of Engineers, however, believes the Mississippi River defenses in Illinois require hundreds of millions of dollars in repairs and fixes in order to meet FEMA’s standards before the new maps are released and show the levees to be functionally useless, and that’s money and time the agencies in charge of levee management simply don’t have, and such a downgrade would force those homeowners in the region who have federally-backed mortgages to buy flood insurance, even if they’ve never been flooded before.

FEMA’s authority to require the insurance comes from the 42-year-old National Flood Insurance Program that Congress enacted as a result of the public’s inability to get privately backed insurance for flood losses.

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Got Sewage? Get Coverage

May 12th, 2010 by Iris | Comments Off | Filed in flood insurance, homeowners insurance

According to the Insurance Information Institute, most sewer backups are not covered by a standard homeowners insurance policies, and if your sump pump can’t handle the runoff after a major rainstorm, that isn’t usually covered, either. If you don’t have a home warranty, or didn’t purchase extra coverage just for your sewer system, that flood in your basement may just wash all your money down the drain.

Even though they’re not generally covered by insurance, sewer backups are a fairly common occurrence, and they can be caused by many things, including aging sewer systems and combined pipelines (those which handle storm runoff and sewage in the same system). Blockage of sanitary drains and water seeping into basements are also common, and not covered under standard policies.

What can you do? First look into either special sewage system coverage, or consider a home warranty, which will cover all of the internal systems in your home – including plumbing – that standard insurance doesn’t, then, take a look at these tips to reduce system failure.

  • Problems with tree roots in the lines? Replace your old pipe with new plastic. It’s more durable, and cheaper to repair.
  • Consult a plumber to fix any illegal plumbing connections that could cause problems down the line.
  • Install a backwater protection valve, to make sure that sewage flows out of your home, but can’t flow back in. have a qualified plumber do this.
  • Dispose of grease, paper products and other such household trash in the proper way. Grease should never be poured down the drain, and the only paper product that should ever be flushed, is toilet paper.

Remember that insurance companies may not tell you what is or is not covered; it’s up to you to read your policy very carefully, and ask questions about anything you don’t understand in your homeowners policy.

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Storm Surge Warnings Might Be Added to Weather Alerts

April 2nd, 2010 by Iris | Comments Off | Filed in flood insurance

We’re still a couple of months away from the start of the Atlantic hurricane season, but that’s not too soon for the the National Hurricane Center (NHC) to be considering a new addition to their already vast collection of watches and warnings typically issued during hurricane seasons.

Specifically, NHC officials pitched the idea of a storm-surge warning to the group of first responders, meteorologists and emergency managers who attended the recent 2010 National Hurricane Conference held in Orlando, Florida, but no actual decision will be made for another two or three years.

What’s the reasoning behind a storm surge warning? It’s because there are places that aren’t necessarily inside the cones of hurricanes but are still susceptible to storm surge, and would benefit from such warnings, according to Bill Read, director of the National Hurricane Center in Miami. Read explained, “In a storm like Hurricane Ike, surges are far more dangerous than wind in a particular location. We’re thinking we need to have that warning.”

Hurricane Ike, which struck in 2008, damaged 75% of the houses in Galveston, Texas, but also submerged many acres of farmland and ranches in salt water, ruined still more acres of vegetation, and scoured away beaches.

If storm surge warnings are adopted, they will take two or three years to implement because of the technical requirements involved in incorporating surge models into pre-existing tide levels and rainfall runoff information. Two years ago, Read said the NHC was working on a program that could mate a Google application with storm surge data, so that property owners could determine the flooding threat from any category of storm.

With the debate on surge warnings comes the biggest change to the hurricane warning system in several decades: beginning in mid-may, the NHC will begin issuing storm watches and warnings roughly half a day sooner than it used to, so when a storm is approaching land, forecasters will send watches advising tropical storm conditions could be expected in 48 hours, rather than in 36, while warnings will be sent 36 hours ahead, not 24. By the middle of this decade, the NHC expects to be able to issue forecasts seven days out.

The Atlantic hurricane season begins on June 1, and despite vulnerable areas in the US, the NHC’s main concern this summer will be Haiti, where over a million people were made homeless by January’s devastating earthquake. Read says that this year, if a storm is heading in that direction, more and earlier briefings will be held, to give residents more time to prepare.

“Most people know we’ve got an impossible situation there,” Read said. “God forbid a major hurricane went across Haiti while we have this many people in a distressed state during the peak of the hurricane season.”

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Flood Insurance and Other Programs Temporarily Restored

March 5th, 2010 by admin | 1 Comment | Filed in cobra insurance, flood insurance

Earlier this week, the U.S. Senate passed legislation that included an extension for the federal flood insurance program until the 28th of March. The extension means that the NFIP (National Flood Insurance Program) can once again issue new policies, something it hasn’t been able to do since its authorization expired at midnight last Friday. The issuing of new and renewal policies has now resumed.

Brad Carroll, press secretary with FEMA, said in a statement, “This reauthorization allows for policies to continue to be issued and renewed. Individuals who were seeking to renew their policies or purchase a new policy during the brief period between February 28 and March 2, when the NFIP was not reauthorized, may now proceed with their purchase. Existing policies were not impacted by the brief lapse in Congressional authorization and continue uninterrupted.”

On February 26, the NFIP had issued a memo that included guidelines for operations during a hiatus, but the several-day hiatus that followed almost immediately did not affect any claims payouts.

Other programs reauthorized through this emergency legislation include COBRA benefits and unemployment insurance.

The National Flood Insurance Program currently covers about 5 million people.

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El Nino Dissipating, but Effects Not Gone

March 4th, 2010 by admin | Comments Off | Filed in flood insurance, homeowners insurance

Reuters is reporting today that the currently active El Nino weather anomaly, which causes abnormal warming of the water in the equatorial parts of the Pacific Ocean, is dissipating, and – in the Northern Hemisphere – it should be gone by early summer, though there is a chance it may merely weaken substantially, and linger throughout 2010.

Reuter’s information comes directly from the CPC – the federal government’s Climate Prediction Center – which is part of the United States National Oceanic Atmospheric Administration (NOAA). Their recent monthly update reported that the hallmark warm Pacific waters are slowly cooling, and that such an easing will result in “…neutral conditions” in June or July. However, the CPC also said that there are, “…everal models (which) suggest the potential of continued weak El Nino conditions through 2010, while others predict the development of La Nina conditions later in the year.”

Typically, El Nino results in chaotic global weather patterns, most notably in the Asia-Pacific region. It was first noticed by Latin American anchovy fisherman in the 19th century, who nicknamed it “Little Boy,” a reference to the Christ child, because it traditionally arrives around Christmas time. The opposite anomaly, La Nina, leads to cooler waters in the Pacific Ocean, and is often said to spark storm formation during the annual Atlantic hurricane season.

The 2009-2010 El Nino has been moderate to strong, says the CPC, with sea surface temperatures remaining warm through February, but is is also linked to the severe winter storms which have hammered the eastern United States. It was also blamed for a weak monsoon which caused severe damage to the Indian cane crop, forcing the price of sugar to a 29-year high. In addition, El Nino is believed to be connected to a severe dry spell which has hit the countries of Indonesia and the Philippines, forcing the later to increase their rice imports. The Philippines is already the world’s largest importer of the grain.

As the year progresses, the United States should expect above-average rainfall in the southwestern and south-central states, and Florida, and below-average precipitation in the Great Lakes and Pacific Northwest regions.

The “good” news – at least for residents of the Atlantic seaboard, is that if El Nino continues into June, it may hinder the formation of Atlantic hurricanes this year.

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Flood Insurance, other Programs, Not Extended by US Senate

March 2nd, 2010 by admin | Comments Off | Filed in cobra insurance, flood insurance, insurance news

Last week, the United States Senate failed to vote on several bills meant to extend federal programs including unemployment, COBRA, flood insurance, and transportation project funding, before their expiration dates on Sunday, February 28th. Why? Because one senator, Jim Bunning (R-KY) has concerns enough about how to pay for such programs, that he’s blocked final approval of any of them.

The result of this is that all of those programs could be in political limbo for a week or so, until the Senate finds away to either approve the extensions without Bunning, or assuage his worries. Practically, this means that – for example – the National Flood Insurance Program (NFIP) will not be able to issue any new policies, approve renewals, or increase coverage amounts, until reauthorization has been approved by Congress.

Senator Bunning maintains that Congress has not met the requirement of paying for the requested extensions, either via new funding or budget cuts. He says he does support the extensions, but feels funding should be clear before they’re approved. Mr. Bunning is not seeking re-election after his current term ends.

On the Senate floor, Bunning said, “The only difference I have, and some of my good friends from the other side of the aisle, is that I believe we should pay for it. There is a right over the last three years of the Democratically controlled Congress. We have run up $5 trillion in debt. There has to be a time to stop that.”

In response, Senate Majority Leader Harry Reid vowed that the extension measures would pass by week’s end, but he also criticized the Republican senator’s delay tactics, explaining, “We talk a lot about Senate procedure in our debates, and that’s often appropriate. But it’s also often complex. The catch here is that these benefits do not need to expire. We have the ability right now to extend them for just a short time until we work out a longer-term solution. It is irresponsible not to. It is immoral.”

If the extension measures are approved, flood insurance would only be extended through March 28th of this year – just a month. There have already been other short-term extensions within the past year.

The United States House of Representatives has already approved the flood insurance extension.

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16 Months Later: Hurricane Ike Claims Still Being Paid

January 31st, 2010 by admin | Comments Off | Filed in flood insurance, homeowners insurance

The Texas Insurance Council has issued an update on the financial aftermath of Hurricane Ike, which struck Galveston on Sept. 13, 2008 calling it “the costliest weather catastrophe in Texas history by a large margin.” So far, the storm has toted up almost $12 billion in windstorm and flood insurance claims in the state. The windstorm portion of that number accounts for $9.8 billion, while the rest is due to flood insurance claims – almost 44,000 of them were filed after Hurricane Ike.

Much of the flood damage was due to the storm’s 16-foot surge, which destroyed businesses and homes on Bolivar Peninsula, as well as several communities surrounding Galveston Bay, along the Texas coastline, and inland from Orange to Freeport. In addition, more than half of Galveston Island was submerged by the rising water. Fortunately human loss was low – only 20 deaths were directly attributable to the storm, mostly from drowning, because the coastal residents took a lesson from Hurricane Katrina, and actually followed evacuation orders from the National Weather Service.

The Texas Department of Insurance reported that there were more than 800,000 windstorm claims from Hurricane Ike. Sixteen months after the fact, one insurer, the Texas Windstorm Insurance Association, is still receiving damage claims. Eventually, TWIA is expected to pay out almost $2 billion in Ike-related claims.

Texas wasn’t the only state heavily damaged by Hurricane Ike. The path of the hurricane after landfall took it up the Intersate 35 corridor, where it settled over the midwest dumping inches of rain, and causing more damage. In addition, neighboring state Louisiana reported $318 million in flood losses, while hurricane-force winds in Ohio created insured losses in excess of $1 billion, making it the costliest weather disaster in that state, as well.

While wind damage is generally covered by homeowners insurance, flood damage is not. Coastal residents in states like Texas and Florida are urged to examine their policies now, check to see if they live in flood zones where mandatory flood insurance is required, and update their coverage as necessary.

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Flood Insurance Changes in Illinois and Nebraska

January 14th, 2010 by admin | Comments Off | Filed in flood insurance, insurance news

It’s difficult enough to know when flood insurance is required when you live in a relatively stable region, but property owners in three counties in southwestern Illinois are in a kind of flood zone limbo, while they wait for new Mississippi River flood maps to be drawn.

According to Illinois Senator Richard Durbin, the Federal Emergency Management Agency (FEMA) has informed him in writing that there will be a delay of new flood insurance maps for Madison, Monroe, and St. Clair counties, until at least 2011.

Originally the maps were to be published sometime this year, but FEMA has told Senator Durbin that more time is needed for accurate analysis of public comments about the maps, as well as to handle “other required administrative steps.”

Since the revised maps are expected to result in a significant increase to the size of the flood plain, the number of people for whom flood insurance will be mandatory, and the cost of such insurance, the people of Illinois are not upset about the reprieve.

Further west, in Nebraska, there are also changes to flood insurance in the works, but in this case the news is good: the city of Lincoln, NE has received a rating upgrade that will save local property owners money on their flood insurance

A press release from Lincoln Mayer Chris Beutler said that the city’s rating improved from class 7 to class 6 in the Federal Community Rating System. Mr. Beutler attributes the improvement to the city’s extensive work with federal officials to gain credits to the flood protection provided by the Salt Creek levee.

Representatives of the City of Lincoln say that the improved rating will help local property owners save about 20% a year – or roughly $160 – on flood insurance, as opposed to a savings of 15% ($120) under the old rating.

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