Posts Tagged ‘flood insurance’

« Older Entries
Newer Entries »

Friday Filmstrip: This City, by Steve Earle

August 27th, 2010 by Iris | Comments Off | Filed in flood insurance, friday filmstrips, homeowners insurance

This Sunday, August 29th, marks the 5th anniversary of Hurricane Katrina, and the devastation it left on the Gulf Coast, especially in Mississippi, Alabama, and of course, New Orleans, Louisiana. Rather than write a post reminding everyone that homeowners insurance and flood insurance are separate entities, we’ve decided to make a departure from our usual “Friday Filmstrip” fare, and share a music video. The performer is Steve Earle. The song is “This City,” which was used in the HBO series Treme.

Tags: , , , , ,

Des Moines Seeks Money to Buy More Properties in Flood Zone

August 16th, 2010 by Iris | Comments Off | Filed in flood insurance, insurance news

Spurred on by recent heavy rains, officials in the city of Des Moines, IA, are seeking more money to buy properties in a flood-prone part of the city, along Four Mile Creek.

According to city manager Rick Clark, flooding in the Four Mile Creek neighborhoods is “uncontrolled,” and recent weather has only shown that more buyouts are needed.

After serious flooding two years ago, the city of Des Moines spent over $1.5 million acquiring, relocating, and demolishing seventeen properties near Four Mile Creek. The money to do so came from a combination of local, state, and federal sources.

Since then, the city has received a grant from the State of Iowa to purchase six more properties, and is awaiting instructions from the state on how to proceed.

City officials are also working for a comprehensive review of Four Mile Creek’s 120-square-mile watershed.

Tags: ,

August Busiest Month for Hurricanes

August 11th, 2010 by Iris | Comments Off | Filed in flood insurance, homeowners insurance, insurance news

While the National Oceanic and Atmospheric Administration (NOAA) has slightly amended the hurricane outlook it released in May, an above-normal season is still expected. With ocean temperatures at record highs, and the climate phenomenon known as “La Nina” beginning to development, government forecasters maintain that this may be the busiest Atlantic hurricane season since 2005.

The original forecast predicted 14-23 named tropical storms during this hurricane season. Those numbers have been revised to a range of 14-20. The Atlantic hurricane season began on June 1st, and runs through November 30th, but the peak period is in high summer and early fall: August through October, during which eight to twelve storms could develop into hurricanes, four-to-six of which could evolve into “major storms” with winds in excess of 111 mph.

Jane Lubchenco said in a statement to the press, “August heralds the start of the most active phase of the Atlantic hurricane season and with the meteorological factors in place, now is the time for everyone living in hurricane prone areas to be prepared.”

Historically during active storm seasons, multiple hurricane strikes are much more likely for both the Gulf Coast and the East Coast in the U.S., but the Caribbean also sees a marked increase in the number and severity of storms during active seasons. This could mean bad news for Haiti, where there are roughly 1.6 million people still living under tarps and in tents, seven months after a disastrous earthquake crumbled its capital.

So far this season, three named storms have developed. Hurricane Alex made landfall in northern Mexico on June 30th, and tropical storm Bonnie caused some trouble for oil company crews working in the Gulf of Mexico in July. Last Thursday, tropical storm Colin regenerated, with winds of 45 mph over the open Atlantic, according to the National Hurricane Center in Miami, FL. A tropical storm warning was issued for Bermuda.

According to Gerry Bell, lead seasonal hurricane forecaster at NOAA’s Climate Prediction Center in Washington, the May outlook, which called for eight to 14 hurricanes, with possibly three to seven major hurricanes, reflected a more active early summer than we actually had. Bell also said that the update is based on indications that a high-activity era which began in 1995 is continuing.

“The atmospheric and oceanic conditions now in place are very conducive to hurricane formation, as we had predicted in May,” he said.

A Pacific Ocean phenomenon called La Nina developed in July, reducing wind shear in the Atlantic and making it easier for storms to take shape. As well, ocean temperatures are exceptionally high, and the warmest since 2005 when Hurricanes Katrina and Rita tore apart the very part of the Gulf of Mexico now dealing with BP’s oil spill. According to Bell, during above-normal seasons it’s typical for three named storms to spin into the Gulf between August and November. A storm’s individual strength and its path across the water would determine whether there would be any impact on remaining oil from the explosion last April.

Tropical storms are named when sustained wind speeds reach 39 mph (62 kph). They become hurricanes when sustained winds reach 74 mph (119 kph). Major hurricanes blow at 111 mph (178 kph) or more. The strongest hurricanes are labeled Category 5, with winds greater than 155 mph (250 kph).

Last week, researchers from Colorado State University researchers said they also expected this year’s season to be more active than average, forecasting 10 hurricanes, five of them major.

Hurricane season ends Nov. 30.

Tags: , , ,

Better Tools, Better Risk Assessment

August 4th, 2010 by Iris | Comments Off | Filed in flood insurance, homeowners insurance

People living in Miami probably won’t be too surprised at the findings of a crew of Florida State University researchers. The city is vulnerable to strong hurricane winds. Yeah, not a news flash. Maybe the fact that Miami is Florida’s most vulnerable city jazzes the story up a bit. The real point, however, is that the team has developed a new tool for estimating the frequency of extreme winds at any given location. That has great significance in terms of emergency preparedness and risk calculation for insurance purposes.

In the press release, Jill C. Malmstadt, one of the authors of “Risk of Strong Hurricane Winds to Florida Cities” (November 2009, Journal of Applied Meteorology and Climatology), said, “Not unexpectedly, we found that the extreme wind risk from hurricanes varies across the state. Areas in the northeast, such as Jacksonville and in the Big Bend between Tampa and Tallahassee, have longer periods between occurrences of a given strong wind speed compared to areas such as Miami and Pensacola. That’s also where we found the highest annual threats of a catastrophic hurricane event.”

The researchers concluded that every 12 years on average Miami will experience winds of 112 mph or stronger, the equivalent of a Category 3 hurricane. The last time winds of that magnitude hit the city was Hurricane Wilma in 2005, so, by this study, the 2017 hurricane season will be a severe one for residents. Folks in Tallahassee, on the other hand, the least vulnerable locale in Florida, get winds of that velocity once every 500 years. Is it difficult to figure out how that’s going to effect insurance rates when plugged into existing risk calculations?

While the knee jerk response of most insurance customers is to react negatively to increased rates based on “perceived” risk, proven risk might make the medicine go down a little more easily. Of course, the model will have to be in use over a period of time before it gains acceptance in either meteorological or insurance circles, but to a large extent the basis of fair rates is better science. Customers have complained for years that risk assessment for insurance is a highly subjective and often influenced by prejudice and stereotype. Bottom line: better tools, better, more verifiable rates — especially in an area as prone to storm damage as Florida.

Tags: ,

Iowa Communities Choose to Opt Out of National Flood Insurance Program

July 8th, 2010 by Iris | Comments Off | Filed in flood insurance

Last week, Congress voted to reauthorize the National Flood Insurance Program, and on July 2nd, President Obama signed the extension into law, keeping it active until September 30th, but not everyone is taking advantage of the reinitiated program, especially in Iowa.

According to government officials, only eighteen cities and counties in Iowa have joined the NFIP since the floods that soaked their state two years ago. Why not? Because of paperwork and money.

Specifically, local officials say, the participating communities are required to adopt and enforce flood plain management ordinances in order to reduce damage from future floods, and that process either takes too much red tape, or would increase insurance costs to home- and business owners.

Unless their communities agree to participate in the national flood insurance program, residents of those communities cannot purchase federal flood insurance. This year, 113 Iowa cities and counties within flood hazard areas have chosen not to participate, down from 131 non-participating communities in 2008.

Tags: ,

National Flood Insurance Program Reauthorized…Again

June 23rd, 2010 by Iris | Comments Off | Filed in flood insurance

The House of Representatives has passed another temporary extension of the National Flood Insurance Program until Sept. 30, 2010.

The program has been suspended since May 31st, making the issue of new policies impossible. In this extension, reauthorization provisions have been embedded into legislation relating to jobless benefits and tax breaks – legislation that the Senate has already voted down twice.

The newly-passed House bill, HR 5569, was sponsored by Representative Maxine Waters (D – CA) and Representative Walter Jones (R – NC) but the Senate must still act upon it.

The Independent Insurance Agents and Brokers of America (Big “I”) commended the House for its vote and urged the Senate to act quickly.

Charles Symington, Big “I” senior vice president of government affairs, told the press. “The program has been expired since May 31, putting millions of consumers at risk from the economic dangers of flood right in the midst of the hurricane season and storm season in the Midwest. The expiration has also threatened to wreak havoc in both the real estate and insurance markets during a period of great economic difficulty. It is vital that the program be extended and we therefore urge the Senate to act on this bill without delay.”

Since the end of May, the program has not been able to issue new or renewal flood policies, though it has still been paying claims for existing policy holders. This is the fourth time in the last year that the program has been interrupted because Congress failed to reauthorize it for an extended length of time.

The Big “I” and other industry groups hope that Congress will move beyond temporary extensions and pass legislation that authorizes the program for five years and makes certain reforms to it.

Tags:

Oklahoma Spring Storms Lead to Insurance Headaches

June 21st, 2010 by Iris | 1 Comment | Filed in flood insurance, homeowners insurance

Property owners and insurers in Oklahoma are all suffering the effects of recent severe flooding and extensive damage from last month’s wind storms, the Insurance Journal reports. The heavy rains earlier this month caused additional damage to the homes of some residents who had yet to make repairs made necessary by violent storms in May.

Most mainline commercial insurance companies don’t offer flood insurance, which must be purchased through the National Flood Insurance Program, a division of FEMA, but those people who don’t have mortgages which require flood coverage may not be aware they need it.

Jerry Johns, president of Southwestern Insurance Information Service told reporters, “What’s sad is to see someone who thinks their homeowners’ insurance covers flooding – and a lot of people do – to realize that everything has been destroyed and they have to pay to replace it.” However, he explained, the average auto insurance policy that includes comprehensive coverage will pay for flood damage to vehicles, so motorists with flood-damaged cars would be well advised to file claims sooner rather than later.

Kim Holland, Oklahoma’s Insurance Commissioner, declared an emergency in May, after two different storm systems caused damaging wind, hail, and tornadoes. The move was designed to make it easier for out-of-state insurance adjusters to obtain licenses. The Insurance Department issued roughly 2,000 such licenses last month, including 500 that were temporary, expiring in 90 days, said spokesperson Jennie Kleese.

Holland estimated that the May storms caused about $1 billion in insured damage.

Johns, who is based in Houston, TX , said that Oklahoma has certainly had its share of catastrophes this spring. He said, “The only thing you don’t have are hurricanes but don’t rule that out.”

Tags: , ,

« Older Entries
Newer Entries »