Live Insurance News

Congress may be slow to act on flood insurance

January 7, 2016January 5, 2016 Logan B.

Presidential election and short legislative session gives Congress limited time There may be relatively little action taken by the United States Congress this year, largely due to a short legislative session and the impending presidential election. This could mean some trouble for the insurance industry, as the U.S. may be lagging behind addressing issues concerning international insurance regulatory initiatives. This may also place more pressure on the National Flood Insurance Program, which has already struggled to find appropriate support from Congress over the past several years. National Flood Insurance Program…

California residents are being encouraged to purchase flood insurance

November 13, 2015November 12, 2015 S.Vagus

FEMA urges homeowners to obtain flood protection ahead of El Nino Homeowners in California are being urged by the Federal Emergency Management Agency (FEMA) to purchase flood insurance ahead of the arrival of the El Nino storm system this winter. The National Oceanic and Atmospheric Administration predicts that El Nino will be particularly powerful this year and may strike the Bay Area in as little as two weeks from now. Notably, the majority of homeowners in the state do not have flood insurance coverage, largely due to a lack of…

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…

National Flood Insurance Program continues to struggle in the US

August 20, 2015August 19, 2015 Logan B.

Federal program is still trying to resolve claims that it received 10 years ago The U.S. National Flood Insurance Program is still struggling to recover from 10 year-old claims that have yet to be resolved. Despite efforts to assist the program in its recovery, the program continues to have trouble when it comes to providing consumers with flood insurance protection and handling claims in an appropriate fashion. Many of the program’s financial issues can be traced back to Hurricane Katrina, which had a major financial impact on the U.S. as…

Munich Re enters into the private flood insurance market of the US

August 10, 2015August 8, 2015 S.Vagus

Insurer offers new product for homeowners in the United States Munich Reinsurance America has introduced a new insurance product in the United States that may be a benefit for some homeowners. It is a new flood insurance product designed for those living in low-to-moderate hazard flood zones in inland parts of the country. The new product will provide these homeowners with new options when it comes to flood protection, as this coverage had, for years, only been available through the National Flood Insurance Program (NFIP). NFIP will have competition when…

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…