Below are some reasons ALL homes should be REQUIRED to purchase flood insurance.  It would make the NFIP Solvent.  All homes are at risk of flooding, even if you don’t live near a river or ocean.

The Flood Maps and Actuary Rates would still need to be adjusted so that flood insurance is AFFORDABLE for everyone.

  • Of the 10 million properties in the U.S. at higher risk of flooding, slightly more than half are insured through the National Flood Insurance Program (NFIP). [Risk Assessment, Mapping and Planning Partners (2013) Flood Hazard Demographics and NFIP Policy/Claims Analysis (2013)]

  • There is a 26 percent chance that these at risk properties will experience a flood loss during their 30-year mortgage, with an average cost of more than $35,000 [Risk Assessment, Mapping and Planning Partners (2013) Flood Hazard Demographics and NFIP Policy/Claims Analysis (2013) ]

  • There is a 1 percent chance of a home burning in the same 30-year term, costing an average of $18,000, and yet only 5 percent of Americans go without Homeowners insurance. [NFIP]

With evidence of increased flood risk, why are less than 7 percent of homes and half of high-risk properties insured against flood? [NFIP/U.S. Census Bureau]

The public perception of flood insurance

Studies indicate that one out of five people believe flood is covered under their homeowner’s policy. This suggests the majority of property owners understand they can only receive flood insurance by purchasing it separately. [Bankrate.com]

After Superstorm Sandy, interviews with some homeowners revealed they simply didn’t purchase flood insurance because it lacked the two coverages they felt were necessary: Basement coverage and additional living expense.

  • Less than one year later, torrential rains resulted in a flash flood in Boulder, Colo., causing $2 billion in damage with less than 2 percent of losses insured. [FEMA] In 2015, Texas and Oklahoma experienced catastrophic flooding with projected losses exceeding $3 billion, with only one third insured. [Aon 2015]

  • Superstorm Sandy was the largest Atlantic hurricane on record, spanning 1,100 miles, affecting 24 states from Florida to Maine and as far west as Michigan. In New Jersey and New York, the storm surge reached 14 feet above average low tide, crippling the financial center of the world. In Sandy’s wake were 285 dead and $70 billion in damage. From an insurance perspective, less than half of those affected were insured. [Aon Benfield 2013/NOAA]

  • “The homeowner is aware of the coverage that exists in their homeowner’s policy and expects that the same coverage is present in their flood policy,” said Terry Black, vice president of claims at Aon National Flood Services. “One of the hardest conversations with a homeowner right after a devastating flood is the one explaining there is no provision for additional living expenses.”

  • Due to climate change and increased coastal urbanization, flood damage is expected to double every decade for the rest of the century. [National Academy of Sciences]

  • Of the 10 million properties in the U.S. at higher risk of flooding, slightly more than half are insured through the National Flood Insurance Program (NFIP). [Risk Assessment, Mapping and Planning Partners (2013) Flood Hazard Demographics and NFIP Policy/Claims Analysis (2013)]

  • There is a 26 percent chance that these at risk properties will experience a flood loss during their 30-year mortgage, with an average cost of more than $35,000 [Risk Assessment, Mapping and Planning Partners (2013) Flood Hazard Demographics and NFIP Policy/Claims Analysis (2013) ]

  • There is a 1 percent chance of a home burning in the same 30-year term, costing an average of $18,000, and yet only 5 percent of Americans go without Homeowners insurance. [NFIP]

  • With evidence of increased flood risk, why are less than 7 percent of homes and half of high-risk properties insured against flood? [NFIP/U.S. Census Bureau]

“The homeowner is aware of the coverage that exists in their homeowner’s policy and expects that the same coverage is present in their flood policy,” said Terry Black, vice president of claims at Aon National Flood Services. “One of the hardest conversations with a homeowner right after a devastating flood is the one explaining there is no provision for additional living expenses.”

Read the full article here http://www.propertycasualty360.com/2015/09/30/why-dont-property-owners-have-flood-insurance?t=erm%3Fref%3Dchannel-feature&page=2

Mandatory Insurance Requirement

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