The Louisiana Insurance Department is urging everyone in the state to purchase flood insurance as hurricane season begins. Insurance Commissioner Jim Donelon has been expressing the need for flood insurance for several months. With the April storms causing severe flooding along the Mississippi River, more people are aware of the damage high waters can do, but few are taking steps to protect their homes and property. Commissioner Donelon claims that the number of homes with flood insurance has fallen back to pre-Katrina levels – a disturbing report as hurricane season…
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Industry support remains high for flood reform
The National Flood Insurance Program (NFIP) may soon receive much needed reform as the U.S. House Financial Services Committee passes a new bill that will extend the life of the program by another five years. The Flood Insurance Reform Act, as it is known, will institute a number of improvements to what is considered an archaic program. The bill has rallied the support of many insurance companies across the country, including the American Insurance Association (AIA). Currently, NFIP is more than $17 billion in debt. More than 5.6 million properties…
Read MoreSeveral rally to keep government flood program intact
Record flooding has put Mississippi in a state of disarray. The extent of flood damage is proof enough of the importance of insurance coverage, says the state’s Insurance Commissioner, Mike Chaney. Spurred by the flooding, Chaney is petitioning Congress to renew the National Flood Insurance Program (NFIP) for another 5 years. Chaney argues that Mississippi residents relying on the program for coverage should not have to worry about their only means of protection disappearing. Several other Insurance Commissioners from across the country have joined in support of the continuance of…
Read MoreFarmers fear that man-made flooding will not be covered
Early last week, the U.S. Corps of Engineers breached a levee containing the swelling Mississippi River in an effort to mitigate damages from impending flooding. The action attracted the ire of local farmers, many of whom argued that their insurance would not cover the so called man-made disaster. The waters of the Mississippi continue to rise despite the breached levee, leading the Corps of Engineers to open the Morganza Spillway to mitigate the happening. The plan leads the Louisiana Agriculture and Forestry Commissioner, Mike Strain, to pressure the U.S. Department…
Read MoreThe National Flood Insurance Program at a crossroads
As the waters of the Mississippi River swell beyond their banks, expectations on the overall cost of damages are nearing $2 billion, according to insurance officials. The National Flood Insurance Program (NFIP), the archaic insurance initiative installed by Congress in 1968, is likely to bear the majority of the financial burden. However, the program is already well into the red and the nation can ill afford to support the programs continued spiral into debt. The fate of the program now lies in the hands of the U.S. Congress. On Thursday,…
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