Hurricane season has arrived and there have already been reports of a hurricane raging in the Pacific. Early Friday, the National Hurricane Center announced that tropical storm Adrian had graduated to a full-fledged hurricane and was heading toward land. It is expected to reach the coasts of Mexico within the next day. On the other side of the country, in the Gulf Coast, concerns are rising as to what disasters this season could bring. Along the Mississippi River, the danger of flooding due to storms is all too real. Storms…
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Virginia homeowners urged to review insurance for items not covered this hurricane season
Virginia state insurance regulators are cautioning homeowners to review their policies as the hurricane season begins. Regulators note that several insurance policies include deductibles for wind damage caused by hurricanes, but many others do not. This disparity leads to lapses in coverage that are prevalent throughout the state. The State Corporation Commission says that even if homes are protected against wind damage, there is still the possibility of water damage. Regulators assert that the majority of hurricane losses stem from flood damage. The majority of property insurance policies available in…
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…
Read MoreUpdate on Mississippi River Flood
As of Sunday, the Army Corps of Engineers had opened nine of the 125 bays in the Morganza spillway. The nine bays that were opened in the spillway are diverting around 90 thousand cubic feet of water per second. Louisiana Governor Bobby Jindal was urging citizens in the Morganza area to start preparing for the inevitable evacuation. On Friday, the Army Corps of Engineers didn’t have an exact time when they would be opening the spillway; yet most knew the choice was unavoidable. Citizens in the Morganza area had been…
Read MoreSeveral rally to keep government flood program intact
Record flooding has put Mississippi in a state of disarray. The extent of flood damage is proof enough of the importance of insurance coverage, says the state’s Insurance Commissioner, Mike Chaney. Spurred by the flooding, Chaney is petitioning Congress to renew the National Flood Insurance Program (NFIP) for another 5 years. Chaney argues that Mississippi residents relying on the program for coverage should not have to worry about their only means of protection disappearing. Several other Insurance Commissioners from across the country have joined in support of the continuance of…
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