Mid-America Catastrophe Services

NFIP Enters New Millennium With Virtual Adjusting And Risk Rating 2.0

 Thursday, September 10, 2020

 Insurance Business

As evidenced by Hurricane Laura and other significant events, including the flooding in the Midwest last year, floods pose a serious risk to property owners across the country.

With uninsured losses from flooding piling up, the Federal Emergency Management Agency (FEMA) has focused its efforts on doubling the number of properties covered by flood insurance through its National Flood Insurance Program (NFIP), in turn addressing the significant insurance gap that continues to exist among property owners.

Hurricane Harvey in 2017 was one event that especially underscored this insurance gap, as around 80% of homeowners did not have flood insurance to cover for damage caused by the high levels of floodwater brought on by the storm.

In fact, a few inches of water from any significant rainfall or storm event can cause thousands of dollars of damage to a property, according to Cynthia DiVincenti,director and vice president of government relations at National Flood Services (NFS). The scale of this risk makes the work of FEMA and the NFIP that much more critical.

“FEMA’s flood awareness and flood education is focusing more on overall flood risk,” explained DiVincenti. “Flood events have clearly shown that a far too large percentage of property owners are going without flood insurance.”
CatastrophePropertyLegislation & Regulation