The National Flood Insurance Program has been renewed for another five years, after a vote from the House on Tuesday. The program has been struggling financially for several years, unable to withstand the burden of past disasters and new clients. It has long been the last place people could find affordable flood insurance, especially after Hurricane Katrina drove many insurers away from coastal states. The program’s fate now lies in the hands of Congress, who must determine the final course of action before September 30th, when the program will expire…
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Forced place insurance for businesses in Austrailia
In light of the recent disasters befalling the nation, the Australian government may be setting up an inquiry to determine whether states should be forced to purchase commercial insurance policies to cover natural disasters. Legislators are currently pushing to pass a $1.8 billion deal that would help reconstruct levees. The possibility of an inquiry was raised when Treasurer Wayne Swan suggested that there “legitimate questions” about what states had done regarding insurance. Swan said that “it is probably timely for us to evaluate all of those questions, to have a…
Read More“Forced Placement” insurance rates are through the roof
“Forced placement” is when a lender buys a policy for a borrower at premiums that can significantly increase the price of insurance. If you fail to renew your own homeowner’s insurance and the lender finds out, they will automatically purchase this coverage for you. The new coverage is more expensive and doesn’t have the same coverage as your homeowner’s policy would. J. Robert Hunter of the Consumer Federation of America, feels the problem began because lenders and insurance companies have “set up sweetheart deals… and get all sorts of kickbacks.”…
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