Live Insurance News

National Flood Insurance Program continues to struggle from financial losses

August 31, 2015August 30, 2015 S.Vagus

10 years after Hurricane Katrina, federal program is still financially crippled More than 10 years have passed since Hurricane Katrina hit the United States, and many homeowners are still reeling from the damage caused by the catastrophe. Homeowners faced one of the most expensive disasters in the history of the country and its insurance industry, with some $80 billion in losses, with another $16.1 billion in flood insurance claims. The hurricane, as well as other storms that hit the country between 2008 and 2012, caused serious problems to the National…

Regulators finalize new flood insurance rule

June 26, 2015June 24, 2015 Nordstrom

Finalized rule places new requirements on banks Federal regulators have finalized a rule that will affect flood insurance policyholders. The rule requires banks to hold flood insurance premiums, associated fees, and loans on property located in flood zones in escrow. This rule will go into effect next years and banks will hold payments in escrow on “residential improved” properties as well as mobile homes. The finalized rule has been clarified to make it easier to understand. One of the clarifications involves the definition of detached structures that are excepted from…

Senator calls for changes to National Flood Insurance Program

May 26, 2015May 23, 2015 Logan B.

Flood insurance may need more reform in the future United States Senator Charles Schumer believes that major changes must be made to the National Flood Insurance Program. The federal program is typically the only place that homeowners can find flood protection, but this coverage is provided by private companies that work with the program. These companies have fallen under harsh criticism in recent years due to their handling of claims related to Hurricane Sandy and other disasters that have produced claims. Senator Schumer calls for changes to be made to…

Flood insurance rates to skyrocket in the US

April 16, 2015April 16, 2015 Nordstrom

Homeowners will be paying more for their flood protection this year Millions of homeowners in the United States could see their flood insurance rates skyrocket this year due to provisions of a relatively new legislation that have gone into effect this month. The legislation was meant to address the financial issues of the National Flood Insurance Program, which has been crippled by massive debt for some time. This year, the legislation allows flood insurance rates to increase in order to help the program recover from its financial problems. New provisions…

Flood insurance may be in jeopardy in Oklahoma

April 9, 2015April 8, 2015 Logan B.

New legislations could make flood insurance inaccessible in the state Flood insurance may become more difficult to obtain for homeowners in Oklahoma if new legislations take effect. The Oklahoma Floodplain Managers Association has warned state lawmakers that new legislations that are making their way through both the Senate and the House of Representatives could mean that the state can no longer participate in the National Flood Insurance Program. The federal program is typically the only place that homeowners throughout the country can find flood insurance protection. Legislations seek to prohibit…

Flood insurance rates to skyrocket higher in the US

April 2, 2015April 1, 2015 Logan B.

Flood protection will become significantly more expensive for coastal homeowners Flood insurance rates for coastal properties throughout the United States will rise in April. Rates will rise as a result of the Homeowners Flood Insurance Affordability Act of 2014. The legislation was meant to address the growing issue of expensive flood insurance coverage. One of the provisions of the legislation was meant to delay rate increases for a time, but coastal properties are expected to see significant rate increases due to the other provisions of the law. Coastal properties are…

FEMA to review flood insurance claims

March 13, 2015March 12, 2015 S.Vagus

FEMA will review rejected and underpaid policies that were produced by Hurricane Sandy The Federal Emergency Management Agency (FEMA) has agreed to review the flood insurance claims that have been the subject of controversy. These claims were produced in the wake of Hurricane Sandy, but many were rejected or policyholders did not receive fair payment due to various issues. Those who had their flood insurance claims rejected or mishandled have accused the insurers behind these policies of fraud, which has brought harsh criticism against the National Flood Insurance Program. 144,000…