Flood Insurance Policy

Fundamentally, a community can accumulate points by completion of various hazard mitigating activities to include public information, mapping and regulations, flood damage reduction, and flood preparedness (FEMA, 2017). Below is a table to illustrate these levels. Now, that we have a basic knowledge of the NFIP let’s discuss its benefits. According to FEMA (2012), the NFIP enables policyholders to have coverage up to 250,000 to 100,000, depending on whether the property is residential or commercial. Moreover, the NFIP enables property owners to file a claim without paying back whether the flood becomes a presidentially declared disaster or not whereas disaster assistance requires payback and the disaster to be presidentially declared (p. 2). Therefore, we can see the program has substantial benefits to those who choose to participate. However, there are significant program sustainability issues. First, repetitive flood loss is something which has plagued the sustainability of the NFIP. Since the inception of the NFIP in 1968, approximately 30,000 properties have been deemed severe repetitive loss properties (10 or more losses), costing the program 5.5 billion dollars (Eastman, 2016). Therefore, we can see those who have been impacted by floods continue to be impacted by floods. Secondly, as mentioned above, lack of

The Texas Department of Insurance website has detailed information on homeowner's insurance, car insurance, and renter's insurance that can help you determine which damages may be covered under your insurance plan(s).

Water damage can result from a number of factors ranging from a simple pipe or appliance leak to flooding or drainage backups. The amount of damage can also vary widely from a wet carpet to warped wood or even harmful mold. If you think your insured has [you have] {there is} water damage in their [your town] home or business {your property}, you should call a qualified water damage repair service, like ServiceMaster Dynamic Cleaning, to assess the damage and estimate what water damage restoration and remediation is necessary. Whether insured or not, it is important for property owners to document the damage with photographs or video, and immediately begin loss mitigation procedures.

Harvey flooded 800 wastewater treatment facilities and 13 Superfund sites. That spread sewage and toxic chemicals into the flooded areas. At least $30 billion worth of property has been affected by flooding from Hurricane Harvey just in parts of Texas’ Harris and Galveston counties, a Reuters analysis of satellite imagery and property data shows. According to many articles on the insurance coverage of all the property damaged only 40% of that total may be covered by insurance and of that the federal government will bear the biggest liability. That means families with flooded basements, soaked furniture and water-damaged walls will have to dig deep into their pockets or take on more debt to fix up their homes unless they have some form of flood insurance. In my opinion just few hundred dollars paid on a policy every moth can save thousands lost to a flood. Here are some advantages: NFIP policy holders can choose their amount of coverage. The maximum for residential units is $250,000 in building coverage and $100,000 in contents coverage. For the NFIP maximum is $500,000 actual cash value coverage with no

There has been an ongoing debate between about the renewal of the flood insurance program. The National Flood Insurance Program (NFIP) that expires this year may be replaced by the 21st Century Flood Reform Act, which many think is biased against New Jersey. The bill would set the program in place for 5 years and with that would come higher premiums for policyholders. Those against the proposed extension, like N.J. Republican Frank LoBiondo, are not in favor of the price increase. Homes built before flood areas were mapped would have an annual premium increase between 6.5 percent to 15 percent instead of the current 5 percent to 18 percent, while other homes would face premium increases up to $10,000 a year and increases in surcharges. The new proposed extension would also cut government insurance for homes that have total claims that are three times the replacement value of the damages structure.

As accommodating as insurance companies are to people who are looking for flood insurance, they still have to make a business and the coverage of an insurance policy really depends on the possibility of the area taking place.

Since most homeowner policies do not cover boat damage—especially during use on the water—it makes sense to choose boat insurance to cover mishaps, damage, vandalism, or injuries. To save money, bundle your boat insurance with your home, motorcycle, or auto insurance policy.

The National Flood Insurance Program (NFIP) was established to provide government subsidized flood insurance and is administered by the Federal Emergency Management Agency (FEMA). Since Hurricane Katrina in 2005, the United States has experienced a series of major flood events that has required the NFIP to borrow from the U.S. Department of Treasury. The program is currently $24 billion in debt (Landers, 2014, p. 16). There are a number of areas where the NFIP has been reviewed and already reformed to help reduce costs like reducing administrative costs to manage the program. However, more significant reform is needed to be able to maintain and fund this program. A combination of changes will provide the best results. One direction is to increase the funding base for the program by increasing participation and increasing premiums. Another option is to reduce the cost of the program by shifting some burden to private insurers. In order to become and remain financially solvent, the National Flood Insurance Program needs to be reformed: the NFIP should remain a government administered program with a reform focused on increasing program participation through education and enforcement, and adjusting premiums to reflect actual risks; the NFIP should incorporate privatization through a public-private partnership with insurance companies to provide catastrophic insurance coverage.

When your homeowner's insurance policy covers the actual cash value of your home and your belongings, you are going to have to pay out your deductible as well as the extra money necessary to fix your home or replace your belongings. Although actual cash value policies tend to cost less in the short term, you tend to have to pay more in the long term if something actually happens to your home.

flood risk areas are broken down into High risk, Moderate and Low risk areas with many layered categories of all three levels. After re-reading my Preferred Risk Policy/Flood Policy Declaration, for my houses in Hawaii and Colorado, they both fell under Flood Risk Zone X, which is classified as a moderate flood hazard area. For example, my home in Colorado, the flood map area is 08041C0575F, and since it is not classified for risk for floods, it was classified as an “X.” Through the Flood Insurance Rates Map (FIRM), which is the “The official map of a community on which FEMA has delineated both the special hazard areas and the risk premium zones applicable to the community.” (fema.gov) So with a $20,000 coverage for the building and $8,000 coverage for personal belongings, both with a $1,000 deductible, our yearly premium is $417.00. I thought this was an acceptable premium considering the unknown risk, but I should be more cognizant in my community to get an actual assessment, and hopefully get a reduced premium, by “providing affordable insurance for property owners and by encouraging communities to adopt and enforce floodplain management regulations.” (fema.gov) Some of things I think off the top of my head that the communities can do in order for their residents to be eligible are to install proper water run offs in the streets, have some sort of “green plan” for the area, Furthermore, my Colorado address is “shown on the FIRM, and are the areas between the limits of the base flood and the 0.2-percent-annual-chance (or 500-year) flood” (fema.gov) meaning low to moderate level of severe

Afterwards the National Flood Insurance Program issues claims for flooded homes and business. The problem with this is that the National Flood Insurance Program is one of the government program that will expire on the 30th of September even with this

It could end up being a nightmare. Leaky pipes can cause internal damage that can be exhausting. Storm flooding has the potential to cause costly damage to electrical wiring, flooring, walls and to the home's furnishings. Perhaps many of these items will need to be disposed. We are able to work with your loss adjusters on your claim for flood clean up, providing fast and effective action that reduces the impact on your home or

The National Flood Insurance Program (NFIP) is over $24 billion in debt following disasters such as Hurricanes Sandy and Katrina.1 The program was created in the 1960s because insurers were leaving the flood insurance market due to outrageous risks. Its purpose is to subsidize the policies of property owners in flood risk areas and, for some, is the only way to get affordable flood coverage. Today, about 20% of the 5.5 million flood policies in effect are subsidized by the NFIP. The other 80% pays premiums based on actual risk, which is the point of insurance to begin with.2 What began as a successful solution to unaffordable rates has become an economic disaster, leaving taxpayers to pick up the tab.

Liability insurance covers damage to other people's property, collision and comprehensive is considered physical damage coverage and protects your property.

Devin, I agree that depending on the amount of damage to personal property and cars the demand for flood insurance will increase. Flood insurance is not covered under the normal homeowner's insurance so consumers have to pay extra for a different policy. Consumers with a higher income are more willing to purchase flood insurance to recover their belongings from a disaster than consumers with lower incomes (Ren & Wang, 2016). The price for insurance continues to rise and many consumers don’t purchase extra insurance unless there is a need. The law of demand states that quantity demanded goes up when the price falls (Thomas & Maurice, 2010). However, there are factors that impact demand that is not price. The demand for flood insurance will