Higher Value Homes Mean Higher Insurance Premiums under New Flood System

Waterfront villas on one of the island of Florida Keys, USA

The Federal Emergency Management Agency on Friday unveiled the details of an overhaul to its beleaguered National Flood Insurance Program, the initiative’s first major update in 50 years. Most homeowners in the program will have lower or stable premiums, but roughly 11% of homes—largely the highest value ones—will see increases in premiums of at least… Continue reading Higher Value Homes Mean Higher Insurance Premiums under New Flood System

New York Senator Stalls Climate Overhaul of Flood Insurance Program

A summery day out at a beach in the Hamptons.

One of the federal government’s main efforts to push Americans to prepare for climate threats is in question after the Senate majority leader’s office objected to a plan to adjust flood insurance rates. The Federal Emergency Management Agency was preparing to announce new rates for federal flood insurance on April 1, so that the prices… Continue reading New York Senator Stalls Climate Overhaul of Flood Insurance Program

Climate Threats Could Mean Big Jumps in Flood Insurance Costs This Year

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The cost of federal flood insurance will need to increase significantly in much of the country to meet the growing risks of climate change, new data suggests, creating a political headache for the Biden administration. The National Flood Insurance Program, which provides the vast majority of United States flood insurance policies, would have to quadruple… Continue reading Climate Threats Could Mean Big Jumps in Flood Insurance Costs This Year

FEMA Announces Reinsurance Program to Manage Future Flood Risk in 2021

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FEMA has announced its 2021 traditional reinsurance placement for the National Flood Insurance Program (NFIP), continuing its risk management practice against catastrophic flood losses. Reinsurance is a financial risk management tool used by private insurance companies and public entities to protect themselves from large financial losses. If a qualifying catastrophic flood event occurs, reinsurance companies… Continue reading FEMA Announces Reinsurance Program to Manage Future Flood Risk in 2021

FEMA Ranks Los Angeles County As Riskiest in the Nation

Los Angeles at foggy sunrise

The Federal Emergency Management Agency (FEMA) announced in December that it developed a new dashboard that would analyze different risk factors for different locations across the U.S. Risk factors taken into account on this software, dubbed the National Risk Index, are composed of 18 natural hazards, including avalanches, droughts, earthquakes, wildfires and other natural disasters.… Continue reading FEMA Ranks Los Angeles County As Riskiest in the Nation

Analysis Shows 6 Million More Properties At Risk for Flooding than Government Flood Maps Show

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Nearly six million properties across the U.S. have a substantial risk of flooding that isn’t disclosed by federal flood maps, according to a nonprofit research firm that released its own U.S. flood maps Monday. The maps from nonprofit First Street Foundation highlight the widespread nature of flood risk. Flooding caused about $17 billion in property… Continue reading Analysis Shows 6 Million More Properties At Risk for Flooding than Government Flood Maps Show

PG&E Achieves Bankruptcy Court Confirmation of its Plan of Reorganization

Natural disasters and homeowners insurance

PG&E Corporation and Pacific Gas and Electric Company (together “PG&E”) announced today that the United States Bankruptcy Court for the Northern District of California has confirmed the company’s Chapter 11 Plan of Reorganization (the Plan). This follows the California Public Utilities Commission’s approval of the Plan on May 28, 2020. “Today’s ruling in the Chapter… Continue reading PG&E Achieves Bankruptcy Court Confirmation of its Plan of Reorganization

FEMA Provides a 120-Day Grace Period for National Flood Insurance Program

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The Federal Emergency Management Agency (FEMA) is extending the grace period to renew flood insurance policies from 30 to 120 days. This move is to provide relief to the National Flood Insurance Program (NFIP) customers who may be experiencing financial hardships during the coronavirus pandemic. The extension applies to flood insurance policies with an expiration… Continue reading FEMA Provides a 120-Day Grace Period for National Flood Insurance Program

Viewpoint: Climate Change and Soaring Flood Insurance Premiums Could Trigger Another Mortgage Crisis

When Hurricane Sandy hit in 2012, Thalia Panton watched in disbelief as floodwaters careened down her quiet, tree-lined street in Canarsie, Brooklyn. Sparks flew from downed electrical lines as the rapids rose past her thighs. The water receded as quickly as it appeared. But the damage was done. When the skies cleared, Panton was left… Continue reading Viewpoint: Climate Change and Soaring Flood Insurance Premiums Could Trigger Another Mortgage Crisis

R Street Institute Study Calls for A Stop in Development in Flood-Prone Regions

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The threat of sea-level rise should force policymakers to rethink policies that encourage development in flood-prone regions, like the National Flood Insurance Program (NFIP). In a new policy study, R Street Director of Finance, Insurance and Trade R.J. Lehmann makes the case that the NFIP should cease writing coverage for new construction in 100-year floodplains… Continue reading R Street Institute Study Calls for A Stop in Development in Flood-Prone Regions