| It has been over two years since hurricane Katrina | | | | catastrophe related matters, including the House |
| devastated Louisiana and Mississsippi. With many | | | | Financial Services Committee`s vote to expand the |
| homes still not rebuilt, demolished or renovated, it | | | | National Flood Insurance Program to cover wind risks. |
| raises the big question about flood insurance and | | | | A definite win for those who need it. |
| whether or not there should be reform in the | | | | National Underwriter / Property & Casualty Risk & |
| insurance industry. | | | | Benefits Management`s Susanne Sclafane reports of |
| In the September 2007 issue of Mortgage Banking it | | | | the decision of the New Orleans federal appeals |
| is reported that the decision of the U.S. House | | | | court on the need for the homeowners to purchase |
| Financial Services Committee to reauthorize and | | | | the National Flood Insurance Program (NFIP) in New |
| reform the National Flood Insurance Program by | | | | Orleans, Louisiana. It is triggered by the claims on |
| moving the Flood Insurance Reform and | | | | damages caused by the Hurricane Katrina. Justin |
| Modernization Act of 2007 in late July and that the | | | | Roth, senior federal affairs director of the National |
| decision would curtail the coverage for second homes | | | | Association of Mutual Insurance Cos., said that the |
| while adding for windstorm damage. However, the | | | | flood maps of the nation needs an update to make |
| committee explained that the bill would give | | | | sure that claims are really due to floods to prevent |
| advantage to small business owners. | | | | other claims. |
| Mortgage companies require flood insurance for | | | | With the U.S. House of Representatives approving |
| homes located in flood-prone areas, but homeowners | | | | the H.R. 3121 legislation that intends to expand the |
| in lower-risk areas may also consider coverage to | | | | National Flood Insurance Program (NFIP), by a vote |
| protect their property, according to Terri Cullen of | | | | of 38-29, it aims to offer coverage for wind damage |
| The Wall Street Journal. Average premiums for a | | | | as well. It also includes provisions that would require |
| flood insurance is about $600 a year, but those in | | | | the Federal Emergency Management Agency to |
| high risk areas can pay as much as $5,400 a year. | | | | revise the country`s flood maps by 2010 ,and |
| Tenants in low-risk areas may pay about $200 a year | | | | terminate the subsidies for structures built before |
| or $2,200 for high-risk zones. Leading to the fact that | | | | NFIP`s establishment, which Roth feels is vital. |
| it is very expensive to those who really need it, | | | | Flood insurance is vital those homeowners and |
| spawning debate as to whether the government | | | | renters along our country`s coastline and those near |
| should step in and create legislation for flood | | | | larger bodies of water. Although many more bills |
| insurance in those areas that desperately need it | | | | remain being debated in Washington in regards to |
| such as we`ve seen along the Gulf Coast. | | | | flood reform, one thing is clear, for those that need |
| Heightened interest in the natural catastrophe policy | | | | it most, reform can not happen quick enough. |
| is a plus for supporters of the optional federal | | | | By: Michael C. |
| charter. Congress has dealt with several natural | | | | |