Senate Advances Renewal of Flood Insurance without Wind Coverage
National News • May 7, 2008
A bill to renew the National Flood Insurance Program (NFIP) passed a key test vote in the U.S. Senate Tuesday, with aides saying they expected final action on the legislation before the end of the ...
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Subject: RE: RE: who loses?
Posted On: May 8, 2008, 10:37 am CDT
Posted By: Barry Woods
Comment:
As someone who has to tell an insured that they are only getting a portion of the damages they sustained, I think I speak with a little knowledge on the subject.
I am an Insurance Adjuster who handles Catastrophe losses. The insurance industry is suppose to be based on the law of large numbers. When you have a large pool of houses, some of them will be damaged by whatever and with the payment of premium for the large pool there is enough $ to pay for the ones damaged. The Industry I work for has turned this pool into a small one. They exclude Flood, Earthquake and in counties along the gulf and part of the Atlantic, wind. So a homeowner has to purchase a Homeowners policy, a Flood policy and a sepaarate Wind policy. All with sepaarate deductibles, in some cases 2% of the insured amount.
When a Hurricane hits an area there is some wind damage, but if it coastal it is usually the tidal surge that damages the structures. It is impossible to determine the amount of wind damage to a house when it is gone. All you can do is look at the remaining houses and see what kind of damage they incurred. You look at the surrounding trees and see that the bark is scrapped off at a height of 14 or 18 feet and you know that was the height of the debris floating on top of the surge.
In addition to this problem, NFIP, Nation Flood Insurance Program, only insures houses for $250,000 and the contents for $100,000. Most houses on the beach are in excess of these amounts. The commercial side of the program covers up $500,000 each for the building and contents.
Something needs to be done to protect the Homeowner from going bankrupt from a disaster. If this includes adding windstorm to the coverage then do it.
Subject: RE: RE: who loses?
I am an Insurance Adjuster who handles Catastrophe losses. The insurance industry is suppose to be based on the law of large numbers. When you have a large pool of houses, some of them will be damaged by whatever and with the payment of premium for the large pool there is enough $ to pay for the ones damaged. The Industry I work for has turned this pool into a small one. They exclude Flood, Earthquake and in counties along the gulf and part of the Atlantic, wind. So a homeowner has to purchase a Homeowners policy, a Flood policy and a sepaarate Wind policy. All with sepaarate deductibles, in some cases 2% of the insured amount.
When a Hurricane hits an area there is some wind damage, but if it coastal it is usually the tidal surge that damages the structures. It is impossible to determine the amount of wind damage to a house when it is gone. All you can do is look at the remaining houses and see what kind of damage they incurred. You look at the surrounding trees and see that the bark is scrapped off at a height of 14 or 18 feet and you know that was the height of the debris floating on top of the surge.
In addition to this problem, NFIP, Nation Flood Insurance Program, only insures houses for $250,000 and the contents for $100,000. Most houses on the beach are in excess of these amounts. The commercial side of the program covers up $500,000 each for the building and contents.
Something needs to be done to protect the Homeowner from going bankrupt from a disaster. If this includes adding windstorm to the coverage then do it.