Changes to Flood Insurance

Flood Insurance Rates Increase

Flood Insurance Rates Increase

In the United States, hurricane season is about to begin and many homeowners in South Florida are about to see the impact of changes to the National Flood Insurance program.

The National Flood Insurance Program (NFIP) was first created by congress in 1968 and enables communities to purchase flood insurance from the government. The insurance program was designed o provide an alternative source of insurance for communities who have difficulty obtaining insurance from other sources. The program insures over 5.5 million homes in the United States against flood damage.

After Hurricane Sandy caused so much damage in 2012, congress was forced to lend FEMA $30 billion dollars so they could keep the flood insurance program afloat. It is estimated that Hurricane Sandy was the 2nd most expensive hurricane to hit the USA, causing over $70 billion in damage, second only to Hurricane Katrina which created $108 billion in total damage.

The FEMA boss, Craig Fugate commented on the loan recently: “They gave FEMA borrowing authority, not only for Sandy but also to make sure we had funds available to pay claims for future events,”. Which should insure that the program continues in the forseeable future.

Congress approved the Flood Insurance Reform Act of 2012 which increases flood insurance rates for some areas, but also provides some discounts. Most of those affected by changes in the legislation are those in Florida, where the hurricanes frequently create a great deal of damage.

Some of the changes tha are going to occur include the removal of a discount for 2nd homes, which will raise those rates by 25%, and the average rate will increase by 10%. Homes that have had numerous flood insurance claims will also be paying more and flood prone commercially zoned buildings will also pay about 25% more. Politicians claim that these increases are required so the program can be sustainable and with climate change increasing extreme weather events like Hurricanes Sandy and Katrina, rate increase were the only way to keep the program alive.

Not all home owners are required to have flood insurance, so it is worth talking with an insurance agent to discover if it is compulsory in your area. However if you live in a flood prone area in Florida it is a significant risk. Some home owners have observed from past hurricanes that it is not flood damage that damages their properties, but the hurricane itself. If you did not flood from past hurricanes, you might be able to remove the payment from your insurance expenses.

Cheaper Home Insurance Premiums

Home Insurance

Home Insurance

In recent years the number of natural catastrophes that have occurred world wide has increased. Some scientists suggest that this is due to increasing global temperatures and related climate change. Whatever the cause, it has had a dramatic effect on the cost of insurance premiums as more natural disasters occur.

Everyone wants to make sure that their home is covered by insurance that handles natural disaster incidents but it is increasingly difficult to do so with high premiums. Fortunately there are a number of ways to obtain insurance for natural disasters and lower the cost of premiums.

A lot of people simply choose an insurance policy from the Internet and hope that it covers all of the natural disasters appropriately. Others just walk into an insurance agency and hope that the insurance agent gives them the right insurance at a good price. Unfortunately you may not get the best deal and may not have the most comprehensive cover against natural disasters. You need to scrutinize the policy in it’s entirety and look at ways you can lower the premium.

One way to save on premiums is prepare your home for natural disasters. If your local area experiences a lot of storms, you could install measures which prevent damage, like storm shutters. Then you could find an insurer that gives you a discount on your premium for having those shutters installed. In the long run the money saved is substantial. You can also install security devices or get a dog to save money on your home insurance as it reduces the chances that your home will be burgled.

You can also combine, or consolidate your insurance policies. You can obtain a discount on your insurance costs if you combine policies, so get you car insurance, home insurance and life insurance through the same company. Discuss a discount with the insurance company directly or ask your insurance agent to negotiate on your behalf.

It’s also a great idea to exclude the value of your land from any insurance policies. Natural disasters won’t affect the land (unless you have a property built very close to the coastline). So if the insurance company asks you for the value of your property, just include the price of rebuilding the home and the value of the contents of the home.

By using these three simple tips, you can save a great deal of money on the cost of insurance in the long term. With the increase in natural disasters it’s more important than ever to have sufficient insurance.

Business Insurance & Natural Disasters

Business Insurance & Natural Disasters

Business Insurance & Natural Disasters

You would imagine it will by no means materialize till it happens to you – a natural disaster. Which is exactly what happened to small companies in 5 states this month. Over 150 tornadoes ravaged people’s homes and personal lives in addition to the a lot of small businesses.

The minute disasters such as this materialize, you start to witness figures popping up on weblogs and press internet sites. Here is a single that may resonate with company owners. With out the correct business insurance plan, 25% of businesses are unable to resume operations after a big disaster, according to the Insurance Institute for Business Home & Safety.

Think about it. If the entire nation was hit with a large natural disaster, that would suggest one quarter of all the companies in the U.S. would be wiped out. Which is a great deal.

As an business owner, getting business insurance coverage plan for natural disasters may not be at the top of your wish list. But it should be. If a natural catastrophe hits and you have no business insurance plan in place, your small business and overall money situation might be greatly affected by the absence of planning.

You don’t need to turn out to be a statistic. You’ve placed too much hard work and perspiration into your enterprise. So here are three important things you must do to plan for a natural disaster.

1. Set up a natural catastrophe recovery strategy
– Purchase an emergency kit from red cross
– Be paperless And internet based. And then if your files are wrecked in a natural catastrophe, you will have a back-up copy. If you aren’t paperless, store your important paperwork at a remote location.
– Have a back up plan to carry out business somewhere else.

2. Get Business Interruption Insurance coverage
– This business insurance pays your business for profits it would have generated if it wasn’t for the natural disaster.
– Evaluate just how long the business insurance plan is and how long the pay out is.

3. Look at your current business insurance coverage. Contact your insurance broker/insurer. See what is dealt with and what isn’t. You may well have to invest in a stand alone policy that covers natural disasters like earthquakes, flooding and tornadoes.

Business insurance coverage is all about protecting your investments in the event of a disaster. Precisely how do you know if you need it? Complete this what-if situation. If a disaster could clean you out financially, then you most likely need business insurance. That way, you will be safe when the unexpected takes place. Now that’s some peace of mind, right?