Posted on April 6, 2010.
Natural disasters generate debate on the reform of insurance against flooding It has been more than two years since Hurricane Katrina devastated Louisiana and Mississsippi. With many homes still not rebuilt, demolished or renovated, it raises the big question on insurance against floods and whether or not there should be reform in the insurance industry.
In September 2007 a mortgage bank, it is reported that the decision of the U.S. House Financial Services Committee to reauthorize and reform the National Flood Insurance Program by moving the Flood Insurance Reform and Modernization Act of 2007 to the end of July and that the decision to curtail coverage for second homes, while adding storm damage. However, the committee said that the bill would give the advantage to owners of small businesses.
a mortgage company need insurance against flooding for homes located in areas prone to flooding, but homeowners in low risk areas may also consider a cover to protect their property, according to Terri Cullen, The Wall Street Journal . premiums through insurance against floods is about $ 600 per year, but in areas of high risk can pay as much as $ 5,400 per year. The tenants in low risk areas may pay about $ 200 per year or $ 2.200 for high-risk areas. Developed on the fact that it is very expensive to those who really need, spawning debate over whether the government should step in and create a law of insurance against flooding in areas that desperately need, "such we saw along the Gulf Coast.
The increased interest in the politics of natural disaster is a must for fans of the federal charter option. The Congress has treated several natural disaster related issues, including the Financial Services Committee of the House of `extending the vote to the National Flood Insurance Program to cover wind risk. A final triumph for those who need it.
National Underwriter / Property & Casualty Risk & Benefits Management `s reports Susan Sclafani the decision of New Orleans, the Court of Appeals on the need for owners to buy the National Flood Insurance Program (NFIP) in New Orleans, Louisiana. It is triggered by claims on damage caused by Hurricane Katrina. Justin Roth, director of federal affairs for the National Association of Mutual Cos., said the flood hazard maps of the nation needs an update to ensure that applications are really due to flooding to prevent other claims.
With the U.S. House of Representatives approved HR 3121 legislation that seeks to expand the National Flood Insurance Program (NFIP), by a vote of 38-29, it aims to provide coverage for wind damage as well. It also includes provisions requiring the Federal Emergency Management Agency to revise the country `s maps of flooding by 2010, and ending subsidies for structures built before NFIP` s establishment, which feels Roth vital.
Insurance against floods is essential to the owners and tenants and our country `s coast and near these bodies more water. While many other bills are being debated in Washington regarding the flooding of reform, one thing is clear, for those who need it most, the reform can be done fairly quickly.
By: Michael C. Podlesny
