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Thousands Of Harvey Victims Might Not Have Flood Insurance

Thousands Of Harvey Victims Might Not Have Flood Insurance

Parker says flood water doesn't automatically stop at the boundary line however.

"Unfortunately nothing sells flood insurance like a flood", said Lynn McChristian, the catastrophic response director of the Insurance Information Institute, and a professor of insurance at Florida State University.

At the same time, President Donald Trump has demanded funding for a wall along the border with Mexico, while pushing Congress to enact big tax cuts he argues will stimulate economic growth.

To be sure, not everyone needs flood insurance.

Hudgens said flood coverage is federally backed by the National Flood Insurance Program.

Insurance agencies can determine the risk in a homeowner's neighborhood.

Nearly all flood insurance is provided through the federal National Flood Insurance Program, created in the late 1960s.

"If you're in a high risk zone, before a mortgage company will give you a loan, they often times will say you need to secure flood insurance in order to secure this loan you have", said State Farm Insurance agent Donna Randolph. NFIP was originally created to provide an insurance alternative to disaster assistance to meet the escalating costs of repairing damage to buildings and their contents caused by floods.

The NFIP placed its first significant reinsurance programme in January 2017, ceding $1.04 billion of coverage to a group of 25 private reinsurers and Lloyd's syndicates in an effort to reduce the accumulation of future debt to the Treasury. Congress is due to reauthorize the program by the end of September.

"No matter where you're are, you're in a flood zone", Norberg said. It's not clear how many of them signed up. "But for it to get flooded, you would have to really have heavy storms".

The NFIP has another problem, in that the maps it uses to determine the areas most at risk of flooding are out of date.

"It does so by providing affordable insurance to property owners and by encouraging communities to adopt and enforce floodplain management regulations", the website adds.

He thinks coverage is unfairly expensive here. In some areas with excessive wind damage even the basic essentials like water and food can be a challenge.

"There isn't any pro-rating based on the likelihood of flooding and the severity of the damage", he said.

Experts warn about complacency, especially in areas that are not prone to flooding. It caused about $35 million in damage, Gockley estimated. "There is no need to rush to file a claim". It's only sensible to want people to live in areas that are far less likely to be exposed to natural disaster. At least two people have died, with authorities expecting the death toll to rise as the storm continues.


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