Citibank hit with $18 million flood insurance penalty

Flood insurance penalty - Citibank building

A U.S. banking regulator requires the bank to pay the fine for failure to comply with coverage requirements. The Office of the Comptroller of the Currency announced this week that it was issuing a flood insurance penalty to Citibank. The bank was reprimanded for having failed to comply with mandatory flooding coverage regulations. The fine is reported to be $18 million as a result of mandatory flood coverage purchase delays. The U.S. banking regulator hit Citibank with the flood insurance penalty in response to mandatory coverage purchasing for properties where…

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Fire insurance cost slash away at California real estate market wellness

Fire insurance costs - none on fire

Rising wildfire risks have made a dent in property values due to associated coverage expenses. Homeowners in California face rising fire insurance costs, cutting into the success of the state’s real estate market. Areas both prone to wildfire and those surrounding them are watching values shrink. As insurers continued to raise fire insurance costs and attempted to step out of areas most prone to wildfires, the real estate market has taken a serious hit. Homeowners in the state have been watching the market cool due to the expenses linked with…

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Judge gives the nod to Pacific Gas and Electric $24.5 billion plan

Pacific Gas and Electric - person holding money on fire

Two settlements have received approval, one for the victims of the wildfires and one for insurance companies. A San Francisco federal bankruptcy judge has approved two settlements from Pacific Gas and Electric Corp. for its role in the 2018 wildfires in Northern California. The two settlements total $24.5 billion and acknowledge PG&E equipment sparked several fires. The two settlements from Pacific Gas and Electric Corp are for the victims of the fires that devastated regions throughout Northern California, as well as the insurance companies that were required to pay wildfire…

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California bans insurance companies from dropping climate change risk affected policies

Climate Change risks - forest fire at night

Wildfires have become costly enough that insurers have been ending coverage for many homes. California has taken an unusual new step to help to combat the cost of climate change risks among homeowners across the state. Wildfires have risen in the cost and damage they cause and insurance companies have started dropping coverage. The state has implemented a new regulation to stop insurance companies from dropping policies. The added expense from rapidly rising claims from climate change risks has motivated insurance companies to drop homeowners insurance policies at an increasing…

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California to overhaul comprehensive home insurance following widespread wildfires

Comprehensive home insurance - house on fire

Homeowners who lost their coverage due to fire threats will have access to plans next year. Californian homeowners who have been struggling with the loss of coverage due to wildfire threat will soon have comprehensive home insurance available to them once again. A new state-mandated plan has been created to make sure residents can obtain coverage. California Insurance Commissioner Ricardo Lara issued an order for this new comprehensive home insurance plan last Thursday. It was a response to the catastrophic wildfires that have left devastation in their wake in the…

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Natural disaster damage sends homeowners insurance rates skyward

Natural Disaster Damage - Tornado destruction

Insured losses resulting from claims relating to Mother Nature have been climbing sharply. Natural disaster damage has been sending homeowners insurance claims upward and, as a result, it has meant that rates for policies have been rising, too. A new analysis showed that severe storms and other catastrophes are becoming more common. Over the last ten years, natural disaster damage has become more commonplace and more expensive for homeowners and insurers. According to a new analysis, this is causing home insurance rates to head sky high. The analysis was done…

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California wildfire preparedness takes the spotlight as evacuations rise

California wildfire preparedness - forest fire

Thousands of residents are learning how to prepare as power outages and smoky conditions increase. California wildfire preparedness has become an important topic in the state as blazes continue to rage in various parts of the state, including in regions around Los Angeles. As the threat of fire intensifies and evacuations increase, residents are learning how to be ready. Residents who have not already made a California wildfire preparedness plan are being advised to do so. The reason is that there isn’t always a lot of advance warning before the…

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