Higher cost of flood insurance causes massive coverage dropping trend

Flood insurance - Goodbye - beach
State Farm insurance company sues A...
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FEMA’s program overhaul in 2021 sent prices skyward, causing hundreds of thousands to drop out. In 2021, the Federal Emergency Management Agency (FEMA) conducted an overhaul of its National Flood Insurance Program (NFIP) to encourage homeowners to purchase coverage due to the more precise risk their property faced from flooding. So far, the result appears to be rising rates and hundreds of thousands of people dropping existing coverage. Homeowners that had been purchasing their flood insurance coverage through FEMA have widely dropped their policies, leading to a concerning number of…

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Flood insurance uncommon among Kentucky homeowners under water

Flood insurance - home in water

With dozens of people dead and rain still in the forecast, the area hasn’t been known for this type of flooding. Regions of Kentucky have suffered profoundly as a result of extensive and ongoing flooding, a situation that has only been made worse because there is very little flood insurance coverage throughout the affected areas. Hundreds of homes flooded, primarily badly, and residents were left waiting to assess the damage. While flood insurance is often purchased in parts of the country at a higher risk of damage from these natural…

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California Wildfire insurance expansion act passes House

Wildfire insurance - Laws - Signing

HR 8483 has now passed the House and will require studies by FEMA and the GAO. House Committee on Financial Services Chair Rep Maxine Waters (D) has announced that “The Wildfire Response and Drought Resiliency Act” has passed the House, including her bill HR 8483, “The Wildfire Insurance Coverage Study Act of 2022”. The next step will involve studies to provide assessments regarding the rising danger of the blazes. HR 8483 will require that the Federal Emergency Management Agency (FEMA) and the Government Accountability Office (GAO) conduct assessment studies to…

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Flood insurance rate increases will affect 81 percent of policyholders

Flood Insurance - Increased Rates

FEMA’s NFIP overhaul was intended to increase premiums primarily for larger, high-value homes. A year ago, when the Federal Emergency Management Agency overhauled the National Flood Insurance Program it expected that larger, high-value homes would see most of the rate increases. It anticipated that about 90 percent of policyholders would either keep their existing rates or would even experience a reduction in their premiums. This month, when the changes went into effect, the situation proved to be considerably different. Now that the changes in the National Flood Insurance Program (NFIP)…

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Climate change is likely increasing flood insurance rates quite a bit this year

Increasing flood insurance rates - Flooding in neighborhood - shops & cars

The federal government is examining the cost of coverage on April 1, with data suggesting premium hikes. Much of the country is expected to see increasing flood insurance rates this year in order to cover rapidly rising costs resulting from climate change, according to new data that will create a substantial political struggle for the Biden administration. NFIP would need to raise its premiums by four times for covering high-risk homes in floodplains. The National Flood Insurance Program (NFIP) will need to send its premiums sky high in certain areas…

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Governor Newsom declares California state of emergency in three counties

California state of emergency - Wildfire in California

The alert is regarding the Glass and Zogg wildfires which threaten Napa, Sonoma and Shasta counties. Governor Gavin Newsom has declared a California state of emergency in three counties as a result of the Glass and Zogg fires. Those wildfires have already killed three people and have torched their way through thousands of acres since last Sunday. The governor included Napa, Sonoma and Shasta in his statement and sent a letter to President Trump. In Governor Newsom’s letter regarding the California state of emergency in the three counties, he addressed…

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FEMA announces 120-day NFIP grace period for flood policy renewals

NFIP grace period - Flood - homes

The Federal Emergency Management Agency is lengthening this time from having been 30 days. The Federal Emergency Management Agency (FEMA) has announced the extension of the NFIP grace period for flood insurance policy renewals to 120 days. The National Flood Insurance Program’s limit used to be thirty days. The reason the NFIP grace period length has changed is that FEMA is aiming to provide customers with relief at the moment. It acknowledges that many people are struggling with financial hardships from the coronavirus pandemic. Therefore, the extension is meant to…

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