![]() ![]() ![]() Lynne Yeates McChristian, a spokesperson for the Insurance Information Institute and a risk-management and insurance instructor at Florida State University, said the private market is more equipped to offer better, and also more inexpensive, flood insurance. "The NFIP is a great program because it provided a flood option to people who didn't have it, but what it should be is an insurer of last resort," Albert said. Their flood maps are out of date almost as soon as new ones are released, he said, and its not taking in even close to as much money as its giving out.Įxpansion of private insurers in the market is a "no-brainer," said Jim Albert, CEO of Neptune Flood, which was just named to the CNBC Upstart 100 list of promising, early stage start-ups. Climate change had made its problems far worse by increasing the frequency and magnitude of floods, Moore said, which the NFIP was not built to handle. It needs to be reauthorized by the federal government every five years and hits that mark next month. The NFIP has generally been successful over the years at its goal of expanding flood insurance availability, Moore said, but now, "The program is broken on just about every level." As a result, many consumers are unprepared if a disaster strikes. Any homeowner with a federally backed home mortgage is required to buy additional flood coverage if they are in a designated high-risk area, but it is optional for everyone else. ![]() The program creates flood maps to determine what homes around the country are at-risk for floods, it sets rules for building on the coast, and, perhaps most significantly, it requires flood insurance for anyone the government determines has at least a 1 percent chance of flooding in a given year and offers its own policies for sale. "Essentially, it's Obamacare for flooding decades before Obamacare was created for health insurance," said Robert Moore, a senior policy analyst with the Natural Resources Defense Council and expert in flooding in climate change. It's a government-run program that fills the void in standard homeowners' policies that may exclude storm surge and flooding that can cause catastrophic damage. The National Flood Insurance Program was established in 1968. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Homes and businesses in high-risk flood areas with mortgages from government-backed lenders are required to have flood insurance.Best Debt Consolidation Loans for Bad Credit The NFIP works with communities required to adopt and enforce floodplain management regulations that help mitigate flooding effects.įlood insurance is available to anyone living in one of the almost 23,000 participating NFIP communities. The NFIP provides flood insurance to property owners, renters and businesses, and having this coverage helps them recover faster when floodwaters recede. Flood insurance is a separate policy that can cover buildings, the contents in a building, or both, so it is important to protect your most important financial assets - your home, your business, your possessions. Most homeowners insurance does not cover flood damage. The National Flood Insurance Program (NFIP) is managed by the FEMA and is delivered to the public by a network of more than 50 insurance companies and the NFIP Direct.įloods can happen anywhere - just one inch of floodwater can cause up to $25,000 in damage.
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