Why Isn't Flooding Covered By Regular Homeowners' Insurance?

Why Isn't Flooding Covered By Regular Homeowners' Insurance?

Why Isn't Flooding Covered By Regular Homeowners' Insurance?

Exacerbating this already infuriating and escalating problem, however, is the fact that private insurance companies will not be paying for most of the residential flood damage.

In a press conference, he said Harvey's scope exceeded that of Hurricane Katrina, which devastated New Orleans in 2005. All that damage will be water damage. This means people with inland homes could end up paying curiously high rates compared to coastal ones, based on when they bought the policy.

"The most important thing is to call your insurer and ask what the next steps are", said Lynne McChristian of the Insurance Information Institute, an industry group representing dozens of insurers.

The governor referred to a statement from the Texas Department of Insurance, which reassured homeowners affected by Harvey that they would maintain the same rights to an insurance claim.

A JPMorgan insurance analyst has estimated insured property losses of $10-$20 billion, much higher than S&P and AIR.

Q: Who is required to buy flood insurance?

Flood insurance policies are purchased through licensed agents, such as Randolph, who has offices in Santa Maria and Orcutt. And that's before claims start coming in from Hurricane Harvey, which has flooded parts of the Texas coast with more than four feet of rain over the past week and caused devastating flooding in and around Houston, the nation's fourth-largest city.

"They are more severe". The Consumer Federation of America warns that victims must be vigilant and make sure the claims are handled appropriately. If the government priced its flood insurance at its cost, premiums would skyrocket to a level that would make the program useless.

The CFA also warned about rising premiums in the wake of the storm. These contractors generally are not trained nor educated in insurance policies or policy language and may not as a matter of law present or negotiate insurance claims on behalf of insureds.

So if your home isn't in the NFIP zone, the assumption is it isn't at significant flood risk - an assumption that may well be false.

Now, NFIP is over $24 billion in debt, and most experts agree that this deficit has grown largely for two reasons.

But on Monday during a press conference alongside Finland President Sauli Niinistö, Trump was confident that an aid package would pass through the House and Senate to help pad the dwindling $3 billion that's been allocated for disaster relief by FEMA. The program faces a contentious re-authorization process this fall - it expires September 30. "If you're in a low risk area, they don't require you to buy it, so unless you're required to buy it, most people don't". Meanwhile, the Trump administration's budget actually cut almost $200 million in funding for those often unpopular map updating projects.

This anti-policyholder law also imposes additional (and potentially onerous) pre-suit notice and inspection requirements on policyholders; these requirements are all created to minimize policyholder insurance recoveries. Just enter your address into the map tool here.

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