Flood Insurance Claims Underpayments Not Widespread: Senate Study

By | June 22, 2015

  • June 22, 2015 at 8:35 am
    Yogi Polar Berra says:
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    This result isn’t surprising. WYO carriers know they can be audited, as this report indicates. So why would they underpay and risk penalties/ bad publicity when they will be reimbursed by the Fed / NFIP?

    I attribute the issue to be one caused by hyperbole in the media about underpayment and some ignorance of insureds as to what is covered, the limits, and other details of the NFIP.

  • June 22, 2015 at 3:24 pm
    Water Everywhere says:
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    Amen, Yogi Polar Berra! And considering that WYOs receive a commission based upon the amount of the claim, underpaying is akin to shooting themselves in the foot. I blame the media for taking advantage of our naive and under-educated (in regards to flood insurance) public all for a sound bite. It would be justice if those that falsely reported the underpayments were forced to retract all the statements they made-and on the front page.

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