Certain residents of Michigan have recently received letters from their mortgage companies, informing them that they will be required to purchase flood insurance, or that coverage will be bought on their behalf. This is the result of a newly mapped flood plain by the Federal Emergency Management Agency (FEMA) and affects the residents of the Frank and Poet Drain, who are currently in an uproar over the sudden cost. Since February 2012, when the new Flood Insurance Rate Maps (FIRMs) went into effect, there has been a much larger area…
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New FEMA flood maps may lower insurance rates, homeowners will have to wait a year to find out
Property insurance rates may be going down for Florida’s Marco Island as FEMA prepares new flood maps. The agency is making changes to their flood maps citing risks from pending storms and other factors. While this may be good news for residents of Marco Island, they will have to wait until next year before they see the lowered rates. FEMA has delayed the release of the Digital Flood Insurance Rate Map saying that a later release date would be in the best interest of the community. The delay will allow…
Read MoreMissouri insurance agents vent frustrations over FEMA’s handling of flood insurance
In the states struggling to mitigate the damage caused by the flooding Missouri River, insurance agents are railing against FEMA. Agents claim that federal officials are at fault for causing widespread confusion amongst property owners by pressuring them to purchase flood insurance. The main issue is that these hastily solicited policies may not provide the coverage necessary to protect homeowners from the flooding river. Furthermore, several insurance companies in the affected area say that federal officials have been pressuring insurance agents to sell policies that specifically exclude any damage caused…
Read MoreFEMA seeks to partially privatize National Flood Insurance
The National Flood Insurance Program (NFIP) has had a troubled history. The program is meant to provide affordable home insurance coverage to those that live in areas prone to flooding either from hurricanes or other storms. Thousands take advantage of the program, but it has suffered shortfalls in funding, putting NFIP $18 billion in debt. Congress has been debating solutions to this problem. Legislators have until September 30th to figure it out or the program will be abolished. FEMA administrator Craig Fugate may have a plan that could offset NFIP’s…
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