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.”

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.

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.

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.

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.

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.

On Monday, during the first public planning session for possible flooding, Mayor Dennis Walaker said, “I don’t think anybody is ready for this. Not three in a row.”

A recent flood outlook report from the National Weather Service shows a 20% chance of the river surpassing the record crest in Fargo, ND and it’s sister city Moorhead, MN set in 2009, and a 50% chance it will beat last year’s crest, which was the sixth-highest on records.

Fargo officials said that beginning next month they’ll be spending time in a local warehouse nicknamed “Sandbag Central, filling sandbags. The city currently has about 370,000 filled, shrink-wrapped sandbags in storage, but in mid-February there will likely be a call for volunteers to fill an additional 2 million of them, according to Bruce Grubb, who is coordinating the sandbagging effort. Between March 1st and 15th last year, volunteers filled a million sandbags, just in time for the river to crest on March 20th.

Over the last several years, the city of Fargo has bought and removed dozens of homes from flood-prone parts of the city, and officials are currently in negotiations to acquire about ten more houses before the river has a chance to flood this year, said city administrator Pat Zavoral.

Zavoral explained, “It’s up to the property owners to decide. None of these are condemnations. It’s all volunteering.”

The record crest of 2009 came in at almost 41 feet. This year, city officials are preparing to protect structures below 44 feet with sandbags, levees, and other flood-control methods. Some neighborhoods are requesting help with the construction of “hescoes,” interlocking steel-framed containers filled with sand. April Walker, the city’s senior engineer said that residents in one neighborhood had no objections when informed that hescoes would make a worse mess of their yards than sandbags.

She added, “They’re just darn tired of bagging.”

Fargo city officials plan to meet with the U.S. Army Corps of Engineers later this week, to review the technical aspects of levee construction, according to city engineer Mark Bittner. He said, ““Is it time to make some decisions? I’m not sure. But it’s certainly time to plan.”

Source: Insurance Journal.

FEMA (the Federal Emergency Management Agency) says update rate maps for the National Flood Insurance Program are due to be implemented on January 19th.

Parts of Hawaii affected by the new maps include Hawaii Kai, Ala Moana-Kakaako, Ewa Beach, and Makaha.

Property owners in areas designated as special flood hazard zones, and who hold federally backed mortgage are required to purchase flood insurance policies.

Business and homeowners who purchase flood insurance policies prior to January 19th will be able to take advantage of lower premiums, giving them a potential savings on hundreds of dollars a year.

Last week, California was deluged by heavy rains that, according to early estimates, have already racked up more than $10 million in damage, and resulted in a state of emergency being declared in eleven counties, including Los Angeles, Orange, and Santa Barbara. 70 homes were damaged by the rains and five more were destroyed, in Highland, and so far there have been two deaths because of cars falling into waterways, as well as other storm-related traffic fatalities.

Meanwhile, there are other Western states also facing potential rain damage. In Hawaii, flash flood watches were issued through yesterday afternoon for Oahu, Kauai and Nihau, by the National Weather Service.