natural disaster insurance coverage Archives

Nature Conservancy adds $2 million insurance coverage for Hawaii’s coral reefs

June 14, 2023June 14, 2023 Julie Campbell

Insurance coverage - Coral Reefs in Hawaii

The Central Pacific hurricane season is already underway, and the state is preparing for damage. The Central Pacific hurricane season has started, and this year, the Nature Conservancy has purchased $2 million in insurance coverage to protect against potential damage to the coral reefs in Hawaii. This represents the first time the Nature Conservancy has purchased this type of policy. This insurance coverage is the first of its kind in the United States, in an important move that acknowledges the impact of climate change on increasingly common and destructive hurricanes…

Will heat insurance help protect the poor against extreme temperatures?

May 24, 2023May 23, 2023 G. Turner

As climate change makes the world hotter, the poorest workers in the world might benefit from coverage. By April near Ahmedabad, India, temperatures had already reached 100ºF, an extreme being linked to trends relating to climate change, and one against which heat insurance has the potential to protect affected workers. Everyone from physical laborers to people selling products affected by heat could potentially benefit. Last year, temperatures there reached 114.8ºF, at a peak becoming increasingly commonplace, as 2016’s peak was an even higher 118ºF. That location is far from the…

Commissioner Lara reminds state to review California insurance coverage

January 13, 2023January 12, 2023 Logan B.

California insurance - Flag for California

The recommendation is to know exactly what is covered from floods and mudslides caused by wildfires. Insurance Commissioner Ricardo Lara has issued a formal notice to insurers to inform them that it is their legal duty to provide California insurance coverage for any future disaster such as mudslides caused by the recent wildfires. Those wildfires have left hillsides weakened, increasing risks such as mudslides and flooding. Residents in wildfire burn areas who are at an even higher vulnerability are being advised to check their California insurance coverage to be familiar…

Higher cost of flood insurance causes massive coverage dropping trend

August 22, 2022August 19, 2022 Marc

FEMA’s program overhaul in 2021 sent prices skyward, causing hundreds of thousands to drop out. In 2021, the Federal Emergency Management Agency (FEMA) conducted an overhaul of its National Flood Insurance Program (NFIP) to encourage homeowners to purchase coverage due to the more precise risk their property faced from flooding. So far, the result appears to be rising rates and hundreds of thousands of people dropping existing coverage. Homeowners that had been purchasing their flood insurance coverage through FEMA have widely dropped their policies, leading to a concerning number of…

Insurers remind consumers about Earthquake Awareness Month

February 11, 2022February 10, 2022 Logan B.

February is meant to be a time for property owners to review their coverage in case of a tremor. February is recognized as Earthquake Awareness Month, and insurance companies are reminding their customers to take this opportunity to review their coverage and ensure that they are prepared for the worst. This time is meant to help raise awareness of the importance of preparedness and coverage. Insurance companies use Earthquake Awareness Month to help make certain that their policyholders know how to keep themselves and their families safe in case a…

FEMA recommends flood insurance coverage even outside flooding zones

June 18, 2021June 16, 2021 Logan B.

The Federal Emergency Management Agency says that if it rains, there is also a risk of flooding. The Federal Emergency Management Agency (FEMA) is recommending that home and business owners purchase flood insurance regardless of whether they live in a high-risk zone. FEMA said flooding is the most common and expensive natural disaster in the United States. According to FEMA, flood insurance is not covered under most standard home and business policies. That said, flooding poses the risk of destroying structures and possessions of a home or business in a…

Understanding Natural Disasters and the Insurance Industry

August 9, 2014August 11, 2014 Note From The Editor

Natural disasters are an inherent part of the insurance industry. They are a problem that the industry has been fighting for as long as it has existed, and the battle is fraught with conflicts that insurers often lose. There is no such thing as absolute protection from natural disasters. Floods will cause damage despite the best efforts made to keep waters at bay, earthquakes will shake buildings to rubble, and tornadoes will blow houses apart. The best that the insurance industry can do is offer aid for the recover from…