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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Insurance companies jockey for position over State Farm’s abandoned flood policies
The U.S. House of Representatives have passed reform legislation for the National Flood Insurance Program (NFIP) despite distractions from numerous insurers. State Farm Insurance Company dropped out of the government program last year, leaving over 800,000 policies in the government’s hands. The government’s NFIP covers more than 5.6 million property owners from common natural disasters as well as flooding. State Farm leaving the program marks the largest withdrawal from the program since it began in 1969. FEMA (Federal Emergency Management Agency) runs the government program. The policies are marketed, sold…
Read MoreThe army in a battle against the Mississippi river
The Mississippi River is wreaking havoc on the people of Louisiana as previous estimates of flooding levels have been reassessed and raised due to additional rainfall. Despite previous measures taken by the Army Corps of Engineers, many areas are expecting record flood levels. The Governor of Louisiana met with the Unified Command Group, which is made up of business and city officials and key participants from the health and transportation sectors. After the revision of the flood estimates the group decided to begin a series of new preparedness actions.…
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