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I am in the insurance business along the NJ coast. Flood insurance comprises probably 60% of our business. Statistically a property, any property is 25% more likely to be damaged by flood waters than any other peril. Flood encompasses more than just what we see happened in Houston or what occurred after Sandy, etc. Historically insurers would not touch flood because of the elevated risk of loss. As a result the Fed enacted the NFIA of 1968.
Ironically just this past year the private market mostly through Lloyd's began writing flood insurance, cherry picking the low risk properties (in my area buildings constructed after 1972 and to NFIP standards). Houston being a low risk area would have been exactly what they targeted. It will be interesting to see what happens with private flood moving forward after this.
Also, what many of you may not know is, if you live in a flood zone and have a federally backed mortgage are mandated to carry flood insurance. So if the fed doesn't renew the act which is up for a vote. Everyone in a flood zone with a mortgage will be in default. Banks could call those loans due.
Last edited by drcoastline; 09-01-2017 at 06:15 AM..
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