Posts Tagged ‘flood insurance’

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NFIP Renewed Again

December 29th, 2011 by Iris | 1 Comment | Filed in flood insurance, world events

Under yet another short-term consolidated appropriations bill, H.R. 2055, which was passed by the U.S. House of Representatives and the U.S. Senate, and signed into law by President Obama on the last business day before Christmas, the National Flood Insurance Program has been renewed again – this time until May 31, 2012.

Had the bill not passed, or the President refused to sign it, the Program would have lost its authority to issue new flood insurance policies or renew existing policies, at midnight on December 23rd.

Representatives of the Big “I” – the Independent Insurance Agents and Brokers of America – are pleased with the reauthorization, but continue to push for program reforms, and a long-term authorization for the program.

Speaking on behalf of fellow agents and brokers, Charles E. Symington, Jr., the senior vice president for government affairs with the Big “I,” said, “It is important to note that our work on this important issue is far from over and the next few months provide ample opportunity for Congress to pass long-term extension and reform legislation that provides the necessary certainty for consumers.”

He also pointed out that traditionally, program extensions were granted in five-year periods in order to help keep the market stable, but that in recent years such extensions have usually been in 30-day to six-month terms.

Big “I” vice president for government affairs, John Prible, also spoke about the reauthorization, saying, “Today’s extension, although greatly appreciated, is just a temporary patch.”

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FEMA Says: TX Fire Victims Need Flood Insurance

December 15th, 2011 by Iris | Comments Off | Filed in flood insurance, insurance news

This may seem counter-intuitive, but FEMA is advising the survivors of last spring and summers’ wildfires in Texas to consider flood insurance on their homes and offices.

Why flood insurance? Because when the wildfires burned away the trees, grasses and other vegetation in the scorched areas, the healthy plant roots that usually soak up a lot of rainwater were also lost. All that charred land means that even normal storm runoff has the potential to cause mudslides, flooding, and severe erosion.

The risk of wildfire-related flood damage is greatest, of course, for property that actually burned, but it houses and other buildings either below or downstream from the burned areas are at a heightened risk of flooding, as well. In fact, it is just this sort of interconnectedness that makes flooding the most common natural disaster in the United States.

Flood insurance can be obtained through the agent who sold your regular homeowners or renter’s insurance policy.

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Irene-induced Losses Shouldn’t Prompt Insurance Rate Hike

August 30th, 2011 by Iris | 1 Comment | Filed in flood insurance, homeowners insurance, hurricane insurance

Reuters reported yesterday that while the official total for insured losses caused by Hurricane Irene are not yet official or complete the catastrophe modeling company AIR Worldwide is estimating $3 to $6 billion…and while those are big numbers, they’re actually lower than what was anticipated.

Before Irene actually made landfall, many insurance industry analysts were expecting the losses to meet or exceed $10 billion, but once the storm actually arrived it became clear that the damage was much less than expected.

AIR, whose estimate extends to onshore U.S. properties, is the corporation that makes the software that insurers use to model – or predict – exposure to disasters like earthquakes and hurricanes. On Monday, insurance shares rallied much more significantly than the rest of the market, and it is believed that this is based on investors being relieved that payouts would not be as extensive as predicted.

Even with better-than-expected numbers, however, Hurricane Irene is being considered a “worst case scenario” by some analysts, especially for Allstate Corp. and Travelers Companies, Inc, which may have just had some or all of their third-quarter earnings literally washed away. Nevertheless, this should not prompt any kind of industry-wide insurance rate increases.

Of the areas affected, millions were still without power and suffering from heavy flooding even late yesterday, especially in suburban New Jersey and rural Vermont. Adding up those losses will take some time, as will sorting out how many of those affected individuals and businesses had government-backed flood insurance.

On the up-side, insured losses in the Carolinas are estimated at a ‘mere’ $200 million.

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News Brief: LA Parish Gets Flood Insurance Break

June 13th, 2011 by Iris | Comments Off | Filed in flood insurance

It’s often said that improving property can help save money on insurance, but it’s rare that doing so saves money for an entire neighborhood, and yet, in a sense, that’s exactly what’s happening in Louisiana.

Residents of an unincorporated part of the state, St. Tammany Parish, are going to receive a decrease of $1.9 million in premiums for federal flood insurance, and it’s because the parish’s flood rating has been improved, which translates into an average drop in premiums of 10%.

How did this happen? Well, according to Parish president Kevin Davis, the community has been working very hard on various flood prevention projects.

At the end of the first quarter of this year, there were 35,720 flood insurance policies in place in St. Tammany Parish, at a cost of about $19.7 million a year to the residents.

So far, the federal flood insurance program (NFIP) has paid almost $1 billion in claims there.

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2011 Hurricane Season is Coming

April 18th, 2011 by Iris | Comments Off | Filed in flood insurance, hurricane insurance, wind insurance

It may seem as though winter hasn’t fully left us, and yet, we’re a mere six weeks away from the beginning of the 2011 Atlantic Hurricane Season. So, what are the weather gurus predicting for this year?

According to forecasters at Colorado State University, we’ll see an above-average Atlantic hurricane season. They’re predicting nine hurricanes, five of which are likely to be major, and a 70% chance that there will be at least one which hits the American coastline.

This forecast is actually a slight reduction from the one CSU issued last December, which predicted 16 named storms of which nine would turn into hurricanes, five of which would reach Category 3 or higher on the Saffir/Simpson rating scale.

Last year, there were 19 named storms making it the third most active season (tied with 1897 and 1995) in recorded history. Of those, there were 12 actual hurricanes (making it the second highest season, along with 1969), five of which were major.

The environmental factors determine this year’s prediction, which includes a 72% chance that at least one major hurricane will make landfall in the U.S., include warm surface temperatures in the tropical Atlantic and neutral temperatures in the Pacific. The reduced prediction comes from cooling in the Atlantic and warming in the Pacific.

It’s important to remember that there is no homeowners insurance product specifically for hurricane protection. Instead, a combination of hazard insurance, wind insurance and flood coverage is required. If you live in or near a coastal area, consider checking your coverage now.

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New Flood Reform Bill Due To Appear

April 5th, 2011 by Iris | Comments Off | Filed in flood insurance

Great news from the world of flood insurance: the House Financial Services Subcommittee on Insurance, Housing, and Community Opportunity is scheduled to mark up its last version of the bill to reauthorize and reform the federal flood insurance program tomorrow.

The committee, which is chaired by Representative Judy Biggert (R-IL), launched its NFIP (National Flood Insurance Program) hearings last month. Last Friday, Biggert shared a revised version of the bill, with changes spawned by testimony FEMA administrator (and NFIP overseer) Craig Fugate.

As it currently stands, the Flood Insurance Reform Act of 2011, also known as HR 1309, re-authorizes the program for five years and includes improvements to the way finances are handled and rates are set, as well as increasing the participation of private sector insurers.

Other changes, made last month, include clarifications to the risk mapping standards, and to FEMA’s authority to recommend the rebuilding or demolition of certain properties in order to lessen the financial assistance needed. The bill also requires FEMA to seek proposals from private insurers, and report the results.

Currently, the NFIP is more than $17.75 billion in debt, and much of that is attributed to the hurricanes that devastated the Gulf Coast in 2004 and 2005.

In a statement, Biggert said, “NFIP is deeply in debt, and its current structure simply cannot provide the reliable protection that homes and businesses need without putting taxpayers at extraordinary risk. By putting the program on sound financial footing and encouraging private sector participation within the market, our bill addresses the concerns of homeowners, businesses, industry experts, and taxpayers.”

The flood insurance program‘s last overhaul was in 2004. Since then, it has taken a lot of criticism for under-pricing risk, and promoting development in areas that are known to be flood-prone.

The current authorization for the program expires in September. It is hoped that a new law will be passed by then.

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Friday Filmstrips: Flood Insurance

March 18th, 2011 by Iris | Comments Off | Filed in flood insurance, friday filmstrips

Spring is almost here! The sun is shining, the snow is melting, and oh, yes, the rivers are rising. If you live in a flood zone, and you don’t have flood insurance, you should consider purchasing it. After all, it takes 30 days before flood insurance goes into effect, as this week’s video shows. Enjoy:

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