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Posts Tagged ‘flood’

Menendez flood bill moves forward; policyholders will see relief

flood_homeA few months ago, WGA reported on President Obama’s approval of the Homeowner Flood Insurance Affordability Act of 2014, which sought to scale back major flood insurance premium increases brought on by the Biggert-Waters Reform Act of 2012. Biggert-Water’s called for re-mapping of flood zones, moving scores of homeowners into new, high-risk flood areas and allowed the NFIP to raise premium’s to an actuarial sound basis for risks in the 100 year flood plan. In addition, the reform repealed the property sales trigger, which prevented new homeowners from keeping the very low pre-FIRM rates on new purchases. FEMA defines “Pre-Firm” (Pre- Flood Insurance Rate Map (FIRM)) buildings as “those built before the effective date of the first Flood Insurance Rate Map (FIRM) for a community. This means they were built before detailed flood hazard data and flood elevations were provided to the community and usually before the community enacted comprehensive regulations on floodplain regulation.” These subsidized rates are a way to offer flood insurance coverage to property owners whose homes were built before flood protection was readily available.  Read more…

Congress to NFIP: keep flood premiums in check

floodedEarlier this month Congress passed legislation scaling back major hikes in flood insurance premiums sending the bill to the White House where it is expected to be signed into law by President Obama in the coming weeks. The bill effectively halts many of the changes outlined in the Flood Insurance Reform Act of 2012, which was passed with the goal of making NFIP financially solvent; at the time, the program was $30 billion in debt from claims from Hurricane Sandy and other major storms.

The 2012 changes, frequently referred to as The Biggert-Waters Flood Insurance Reform Act, included provisions requiring the NFIP to raise premium’s to an actuarial sound basis for flood risks. Biggert-Water’s also called for re-mapping of flood zones, moved hundreds of thousands of homeowners into new, high-risk flood areas, thus eliminating subsidized premium rates they had previously benefitted from. In addition, the reform repealed the property sales trigger, which prevented new homeowners from keeping the very low pre-FIRM rates on new purchases.

Read more…

Flood insurance and understanding your risk

January 2, 2013 Leave a comment

NFIPFollowing the widespread flood damage left behind after Hurricane Sandy, more businesses are looking to purchase government flood insurance through the National Flood Insurance Program. According to industry experts, many companies rely solely on the commercial market to buy insurance and don’t realize the benefits of participating in the program. Those who do purchase additional NFIP coverage, however, can use it to help reduce large deductibles associated with commercial flood policies.

NFIP Protection
The NFIP allows non-residential businesses to purchase up to $500,000 in building and $500,000 in contents coverage, while residential businesses can purchase up to $250,000 in building and $100,000 in contents coverage. According to the agency, the average commercial flood claim over the past 5 years has been close to $75,000. Out of the 5.5 million policies Read more…

Dealing with mold risks in the aftermath of Sandy

November 28, 2012 Leave a comment

Hurricane Sandy left millions of businesses and homeowners without power, facing gas shortages and with massive property destruction. The biggest threat, however, may come from mold damage left behind in flooded homes and buildings.

Already increasing at an alarming rate across the country, mold-related claims have become more public, with settlement amounts getting larger. The Alliance of American Insurers estimates that there are over 20,000 active lawsuits nationally involving mold claims filed by homeowners or building owners. That number continues to grow in the aftermath of Sandy as bacteria and mold has been left behind in homes, hotels, commercial buildings and enclosed areas that were flooded. Read more…

Thailand floods lead to industrial disruptions

October 18, 2011 Leave a comment

Our WBN (http://www.wbnglobal.com/) partner in Thailand, Asianet, reports extreme flooding conditions in major areas of the country. We quote them verbatim as follows:

“Great efforts were made to protect Bangkok and the industrial estates. Unfortunately these were not all successful and 3 metre high walls and dams collapsed. Many large industrial estates are submerged under up to 2 metres of water. Pumps are working but there is nowhere to pump the water.

The largest industrial estates which are submerged are Rojana, Hi-Tech, Bang Pa, and In Navanakorn. Read more…

Congress recesses at height of Flood season without extending national program

The U.S. Senate failed to pass an extension of the National Flood Insurance Program (NFIP) last week, which means the program will temporarily cease to issue or renew flood insurance policies. A FEMA memo issued back in October addressed the lapse, or “hiatus” as it was called. At the beginning of March, this also lapsed (2/28-3/2) and was remedied when Congress came back into session, but only for 30 days. Congress has been extending for short periods of time for the last year rather than making a number of changes to the program and extending for a number of years. Read more…