Politicians demand for flood peril to be defined by insurance companies

Insurers in Australia have been confronted with their share of controversy since the floods in Queensland and are now hard pressed to come up with answers. The Minister of Employment and Economic Developement, Andrew Fraser, states there is no obvious difference in damages caused by storm, flash flooding or riverine flooding, and that the clean-up after such damages is indistinguishable. He takes issue with the fact that many insurance policies can draft clear definitions regarding the damage. The issue lies in many insurers refusing, or being unable, to pay for damages…

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Australian’s demand flood insurance change

The recent flood disaster in Queensland, Australia, has impacted thousands and is weighing heavily on insurers and may incite a change in how flood insurance is sold. The waters were indiscriminate – affecting those insured and uninsured. Those who are insured may find that they are not covered under their plan and will be left with nothing. A financial analyst, Joshua Zenas,  is hearing  a definate sentiment of change in the air from consumers and that this will cause companies to be put under the scrutinizing glare of the government. “Given the scale of…

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Flood map errors costing consumers thousands!

The Federal Emergency Management Agency, also known as FEMA, is in charge of mapping out areas for high risk flood zones, but are some of these maps wrong? Banks require flood insurance on homes in these flood zones and many are paying steep prices for what could be old information or even human error! These maps are used to determine insurance rates and with the wrong information premiums can go (on average) from $300 a year to $3500, depending on your area and loan requirements. With no warning you have…

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National Flood Insurance Program update gains House’s vote

The National Flood Insurance Program has not been updated since 1994. The House voted to revamp this vital program to continue protecting homes and businesses as it has for over 40 years. Part of the Federal Emergency Management Agency (FEMA), this vital program is struggling with debt due to recent losses. Available to home and business owners in flood risk areas, the National Flood Insurance Program offers insurance to more than 5 million. This insurance is also available to over 20,000 communities that are involved in efforts to reduce flood…

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