The federal flood insurance program is broken and the repairs will be costly

Federal Flood Insurance - US Congress

NFIP is now fifty years old but the program has not undergone a healthy aging process. The subsidized federal flood insurance program is half a century old and is in dire need of fixes – or potentially a complete overhaul – that will, unfortunately, be unavoidably expensive. The National Flood Insurance Program (NFIP) has become increasingly costly and unsustainable. Federal flood insurance faced its second highest ever claim year in 2017. Hurricanes Florence, Harvey ad Michael placed the spotlight back onto the NFIP’s fundamental flaws. Insurance industry models show a…

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Camp Fire lawsuit filed against PG&E

camp fire lawsuit - wildfire

Insurance claims for the record breaking wildfire have now reached billions of dollars. Three major insurance companies have filed a Camp Fire lawsuit against PG&E as a result of the billions of dollars in claims they are expecting. The lawsuit is only the latest major challenge PG&E faces due to the massive Californian wildfire. The insurance companies that have each filed a Camp Fire lawsuit against PG&E include Allstate Insurance Co, State Farm, and USAA. PG&E has already confessed that it was aware of a high voltage transmission tower close…

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Allstate wildfire losses from November in California reached $685 million

Allstate Wildfire Losses - Fire in forest

The insurance company has announced its November 2018 catastrophe loss estimate including fires. Allstate wildfire losses were recently announced for the month of November 2018. The insurance company estimated its catastrophe losses to be $685 million, at 679 million pre-tax, or $541 million after tax. The Allstate catastrophe losses included another $6 million in unfavorable reserve reestimtates. Initially, the Allstate wildfire losses were estimated to have been $202 million pre-tax, or $160 million after-tax for the month of October 2018. That said, the ongoing fires brought the October and November…

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Bankrupt California insurance company may face state takeover

Bankrupt California insurance company

Regulators move to take over an insurer unable to pay its wildfire claims following massive destruction. A California insurance company bankrupted by the Camp Fire and other wildfires may be taken over by the state. Regulators have made their first moves toward a takeover after wildfires raged through the state, destroying over 13,000 homes. Merced Property & Casualty Company was unable to keep up with the cost of its policyholder claims. The California insurance company was pushed into insolvency by the wildfire sparked on November 8, 2018. That same fire…

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Renters and Homeowners insurance coverage helps evacuated residents

Homeowners insurance coverage - Evacuation Route - Sign

Regardless of whether or not the California wildfires have caused damage, policies are still helpful. People affected by emergency evacuation orders may benefit from their homeowners insurance coverage regardless of whether their homes are damaged. Home and renters insurance policies cover more than just damage caused by wildfires in the area. “With sometimes only minutes to evacuate, residents often escape with only the clothes on their backs,” said California Insurance Commissioner Dave Jones. Hundreds of thousands of people in California have been affected by evacuation orders as a result of…

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Camp Fire in Northern California becomes states most destructive wildfire

Camp Fire - Forest Fire - Wildfire - Firefighters

The wildfire has taken at least 23 lives and has left a massive trail of destroyed homes, cars and businesses. Northern California’s Camp Fire has officially become the most destructive wildfire in the state’s history. The catastrophic blaze is leaving only charred remains of homes, businesses and vehicles. Even more devastating is the tragic loss of life, as at least 23 people have been killed. California has been plagued by wildfires in recent years, with this blaze already seeing the most destruction. The death toll rose over the weekend as…

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Insurance industry calculations required to change due to climate change impact

Insurance industry calculations - Global Warming

Insurers have become the front line of the unpredictability linked with the Earth’s rapid warming. Insurance industry calculations are being forced to change as a result of the impact of climate change on the risks facing multiple sectors. Due to the nature of the business, insurance companies are among the first to face these issues. Measurably increasing rates of natural disasters are raising the number of claims and the size of those insurance claims to property, business, and auto insurers. Storms such as hurricanes and tornadoes, as well as droughts…

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