It’s important to cite that only 44% of premiums go toward paying NFIP insurance claims. That is one of the major reasons why we have a $24.5 billion deficit.
NFIP premiums received $61 Billion in premiums from 1978 – 2014.
Insurance industry average pays out 70% of claims. Using that percentage for NFIP, 42.7 billion would have been paid in claims.
The difference between NFIP and Private payouts would be 15.7 Billion The FEMA stated $24. 5 billion debt would actually be $8.8 billion on this issue alone.
Note: The GAO report above also stated “FEMA does not have the data to determine a total revenue loss figure”
Please also note that many years the WYO’s received up to 66% of premium dollars.
The way this program is run it is not to protect flood policyholders but enrich the WYO’s.
WYO’s are getting richer, while many policyholders are finding their claims delayed, denied and reduced. This prevents homeowners who bought flood policies in good faith from rebuilding and recovering their former lives after a flood event. Please keep in mind that as of January 1, 2017 , 4.5 years after Superstorm Sandy, 10,000 flood policy holders are still waiting to get paid on their claims. What insurance company is allowed to withhold payment for 5 years, hiding behind federal immunity?
Thousands are getting underpaid, denied and delayed in SE Louisiana right now…….
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