White House Request for Sandy Aid Expected to Include Flood Insurance Funds

By and | November 28, 2012

  • November 28, 2012 at 1:54 pm
    Center Point says:
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    Questions to the general insurance community:

    What is to be done about covering property damage on coast properties that are bound to flood?

    Should property owners be allowed to purchase flood insurance again and again knowing that it will cover the cost of rebuilding time after time?

    — Or —

    Should property owners be limited to a one time reimbursement under their flood insurance policy? If they decide to rebuild and it floods again, then it’s on their dime and not the taxpayers?

    Thoughts?

    • November 28, 2012 at 2:10 pm
      CT Agent says:
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      I choose the latter…

  • November 28, 2012 at 5:25 pm
    Dave in KY says:
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    I don’t understand why the states need all the money they are asking for. It’s like everything and nothing was insured at the same time. If you assume that most residents, businesses and government properties are insured, why are these large amounts of money needed outside of the NFIP? This smells unless I am missing something.

  • November 29, 2012 at 9:50 am
    Libby says:
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    You should read the article about NYC further down in this edition of IJ. Entire infrastructures are damaged and some buildings still do not have full power. This is more than some damaged homes.

  • November 29, 2012 at 11:31 am
    Skippy says:
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    @ Dave; money is needed because, even though the NFIP covers flood losses, it is not based on actuarial sound rates for the coverage. The deficit position of the NFIP indicates the subsidies needed to make it whole after Hurricanes Andrew, Katrina, Rita, and Sandy come from US taxpayers.

    Not all people in flood plain bought NFIP coverage, and there may be some post-event ‘coverage’ of those people under the requested help.

    The long run solution to recurring problems with the NFIP is to prevent or discourage building or rebuilding in flood zones.

    Taxpayer subsidies that remain would be at tolerable levels for the fewer remaining homes exposed to frequent flooding. Or, adequate rates could be charged. That would discourage rebuilding in the flood plain and encourage home sales or new home building outside the plain.

  • November 29, 2012 at 11:35 am
    Libby says:
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    Even if you purchase NFIP coverage, the limits are capped and in most cases won’t cover the entire loss. For businesses, there is no business income coverage available under NFIP. So even it you purchase it, you are getting crappy coverage with low limits or no limits at all.



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