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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Farmers fear that man-made flooding will not be covered
Early last week, the U.S. Corps of Engineers breached a levee containing the swelling Mississippi River in an effort to mitigate damages from impending flooding. The action attracted the ire of local farmers, many of whom argued that their insurance would not cover the so called man-made disaster. The waters of the Mississippi continue to rise despite the breached levee, leading the Corps of Engineers to open the Morganza Spillway to mitigate the happening. The plan leads the Louisiana Agriculture and Forestry Commissioner, Mike Strain, to pressure the U.S. Department…
Read MoreInsurance companies jockey for position over State Farm’s abandoned flood policies
The U.S. House of Representatives have passed reform legislation for the National Flood Insurance Program (NFIP) despite distractions from numerous insurers. State Farm Insurance Company dropped out of the government program last year, leaving over 800,000 policies in the government’s hands. The government’s NFIP covers more than 5.6 million property owners from common natural disasters as well as flooding. State Farm leaving the program marks the largest withdrawal from the program since it began in 1969. FEMA (Federal Emergency Management Agency) runs the government program. The policies are marketed, sold…
Read MoreMany question if insurance will cover man-made floods
Recent storms in the south have left the Mississippi River engorged, raising concerns of imminent flooding. Floods have already occurred in Missouri after the Birds Point levee succumbed to the churning waters of the river. As the river continues to swell, the U.S. Army Corps of Engineers has begun taking measures to intentionally breach additional levees in an attempt to control flooding. The action has brought up concerns, particularly among the state’s farmers, about whether insurance companies will pay for damages caused by these man-made floods. The Army’s idea has…
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