Flood Insurance Program Doesn’t Know If Payments Covered Wind Damage

Thursday, June 14th, 2007 Catastrophe Property

Since the National Flood Insurance Program does not collect data on both wind and flood damage claims from its insurers, it’s not possible to know if its payments on hurricane-damaged properties accurately reflect flood only damage, a preliminary report from the government points out. The report from the U.S. Government Accountability Office, which was in response to requests from members of Congress for an accounting of flood claim payments, suggests there could be a conflict of interest when the private insurer for a damaged property allocates wind and flood losses between itself and the federal program.

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http://www.insurancejournal.com/news/national/2007/06/14/80800.htm

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