The Louisiana Insurance Department is urging everyone in the state to purchase flood insurance as hurricane season begins. Insurance Commissioner Jim Donelon has been expressing the need for flood insurance for several months. With the April storms causing severe flooding along the Mississippi River, more people are aware of the damage high waters can do, but few are taking steps to protect their homes and property. Commissioner Donelon claims that the number of homes with flood insurance has fallen back to pre-Katrina levels – a disturbing report as hurricane season…
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Hurricane season quickly moves in while many still pick up the pieces from the last storm
The National Oceanic and Atmospheric Administration is predicting a tumultuous hurricane season this year. The forecast, released Thursday, predicts that as many as six major hurricanes could form over the Atlantic Ocean this season. This is unsettling news for many states in the south currently struggling with national disasters of their own. Insurance companies are bracing for yet more damages. Last year’s hurricane season was relatively tame. Winds kept most tropical storms at sea and prohibited them from forming into hurricanes. “However, we can’t count on luck to get us…
Read MoreUninsured schools lie in direct path of flooding
Louisiana’a Morganza Spillway was opened early last week by the U.S. Army Corps of Engineers in an effort to relieve pressure from the swelling Mississippi River. Waters coming through the spillway are expected to cause damage to crops along their way to the Atchafalaya River. However, the amount of water pouring is causing the river to overrun its banks, putting a number of schools in the area at risk of flood damage. Many of the schools are not covered by any form of flood insurance. Risk manager for the Terrebone…
Read MoreWhat to expect from newly designed flood insurance program
The House Financial Services Committee unanimously approved to extend the National Flood Insurance Program (NFIP) for another five years. Financial reforms will also be established in an attempt to get the debt burdened program back on solid financial ground. The NFIP was created by Congress in 1968. It was intended to provide an insurance alternative to disaster assistance, to help meet skyrocketing costs of repair and replacement of homes and contents damaged by floods. As of last year, more than 5.5 million homes were insured by the NFIP. The National…
Read MoreIndustry support remains high for flood reform
The National Flood Insurance Program (NFIP) may soon receive much needed reform as the U.S. House Financial Services Committee passes a new bill that will extend the life of the program by another five years. The Flood Insurance Reform Act, as it is known, will institute a number of improvements to what is considered an archaic program. The bill has rallied the support of many insurance companies across the country, including the American Insurance Association (AIA). Currently, NFIP is more than $17 billion in debt. More than 5.6 million properties…
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