Hurricane Updates


Please call Lee from Acentria Insurance at 954-351-1960 or  954-270-7966  for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial policies and Life & Financial products as well.

The Federal Emergency Management Agency (FEMA) is seeking to recover the full $1.042 billion of its reinsurance coverage to help pay the federal flood insurance program’s losses from Hurricane Harvey. Those paid losses exceeded the minimum threshold for the NFIP’s reinsurance coverage.

Earlier this year, the National Flood Insurance Program (NFIP) transferred $1.042 billion of the NFIP’s financial risk to the private reinsurance markets, marking a key step towards a stronger and more resilient program.

In January 2017, FEMA executed the 2017 reinsurance agreement with 25 reinsurance markets representing some of the largest insurance and reinsurance groups around the globe. The 2017 placement of reinsurance will cover a portion of NFIP losses above $4 billion arising from Hurricane Harvey, saving taxpayers almost $1 billion.

Under the 2017 reinsurance agreement, reinsurers agreed to indemnify FEMA for flood claims on an occurrence basis. It is structured to cover 26 percent of losses between $4 billion and $8 billion, up to a maximum of $1.042 billion. FEMA paid a total premium of $150 million for the coverage.

On November 6, 2017, FEMA surpassed $4 billion in paid claims to insured flood survivors of Hurricane Harvey, triggering the NFIP reinsurance placement. While FEMA is working diligently to understand the full extent of losses to the 2017 NFIP, loss estimates range between $8.5 billion and $9.5 billion, which would mean that FEMA will recover the entire $1.042 billion in reinsurance. FEMA sent initial bills to reinsurers today.

Thus far, the trifecta of Hurricanes Harvey, Irma and Maria generated more than 120,000 NFIP claims, marking the second largest claims year in NFIP history. NFIP said it has paid over $6.687 billion in claims so far, with processing ongoing.

FEMA’s 2017 reinsurance placement was part of a strategy promoting private sector participation in flood-risk management. FEMA is in the process of securing a new reinsurance placement for 2018.

Please enjoy the full article below;

https://www.insurancejournal.com/news/national/2017/12/06/473261.htm

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Please call Lee at Acentria Insurance at 954-351-1960 for free quotes on Home, Insurance, Flood, Private Flood, Car and Auto Insurance, Business & Commercial polices & Life & financial as well as group benefits. I will refer to our best agents around the state of Florida.

 

New NFIP Re-authorization Deadline Holds:   December 8, 2017

 

Despite the recent flood events, it seems that the NFIP re-authorization will likely not occur in time for the Dec. 8 deadline with another short term extension likely.  The good news is that the Disaster Relief proposed by the Administration has forgiven $16 B in NFIP debt and the focus would indicate that it is unlikely that a lapse of the NFIP will occur.

NFIP Debt Forgiveness & the Trump Administration

 

The NFIP’s debt will drop to approximately $14.5B and offer enough available borrowing authority to pay all outstanding claims due to yesterday’s passage of a Disaster Relief Spending bill proposed by the Trump Administration and sent to the President for signature.

 

The Administration’s disaster spending proposal, including 16 B in NFIP debt forgiveness, came with 15 proposed NFIP reforms which could complicate any future NFIP re-authorization discussions.

 

While Wright Flood continues to work to oppose eliminating access to the NFIP for any property unable to find coverage in the private market, we do support proposed reforms that strengthen the development of a private flood insurance market.

What Does it All Mean for NFIP Re-authorization

 

While Congress remains engaged with NFIP re-authorization and reform

issues, Wright Flood looks to take advantage of the additional time afforded by the short term re-authorization to continue the push for our combined priorities including:

  • Long term, prompt NFIP re-authorization;
  • Fair, business driven compensation for WYO insurers and our insurance producer partners;
  • An even playing field to allow private insurers the opportunity to further develop a private market for flood insurance;
  • The ongoing financial stability of a robust NFIP

Please keep in touch and be on call should we need your political action and support during this process.  In the coming weeks, Members of Congress will be visiting areas impacted by Harvey and Irma.  If you see or gain access to any Member of Congress, make certain they understand the importance of long term NFIP re-authorization for the communities you serve and for you as a business in those communities. 

 

Please call Lee at 954-351-1960 for free quotes on Home Insurance, Flood, Private Flood, Auto, Business & Commercial policies as well as Life, Disability and all group products.

With two Florida landfalls in the same day, Hurricane Irma‘s destructive wind and flood damage could cost up to $65 billion for both insured and uninsured losses, according to a recent estimate by CoreLogic.

Residential property flood loss is estimated at up to $38 billion, CoreLogic reported, noting that includes storm surge, inland and flash flooding in five states – Florida, Alabama, Georgia, North Carolina and South Carolina

80 percent of the flood damage is uninsured, the company said.

Reported insured flood loss for commercial properties could top out at $8 billion.

AIR Worldwide estimated insured losses for the U.S. States resulting from Irma will range between $25 billion – $35 billion.

The catastrophe modeling firm noted the hurricane-force winds extended 80 miles from the eye and tropical storm–force winds extended more than 400 miles, covering the entire state and driving storm surge into both the Atlantic and Gulf coasts.

Downed trees, signs and utility poles and flooded or debris-strewn streets could be seen in the southern regions of the state, AIR Worldwide reported.

Karen Clark & Company estimated losses in the U.S and Caribbean at $25 billion. Of the $18 billion insured loss in the U.S., the majority is in Florida, followed by Georgia, South Carolina and Alabama, KCC reported.

As of Thursday, Sept. 21, the Florida Office of Insurance Regulation reported more than 397,000 residential property claims and just over 17,000 commercial property claims had been filed. Including all types of losses, total estimated insured losses thus far had passed the $3 billion mark. OIR has been updating claims data daily.

Please enjoy the full article below;

http://www.insurancejournal.com/news/southeast/2017/09/22/465115.htm

Please call Acentria Insurance at 1-800-609-8129 for free quotes on Home Insurance, Flood, Private Flood, Auto, Business & Commercial & life & Financial products as well.

The House Financial Services Committee on Thursday passed two bills to reform the National Flood Insurance Program (NFIP). One is a broad reform proposal that seeks to encourage more private insurance and move the program toward actuarial-based rates, while the other addresses premium credits for mitigation efforts and underwriting of urban properties.

Committee Chairman Rep. Jeb Hensarling (R-Tex.) said the committee will reconvene on June 21 to consider additional bills to reauthorize the NFIP

The NFIP will expire on September 30 of this year unless Congress acts to renew it.

The property/casualty insurance industry still has some qualms about the major bill advanced by the committee because it cuts the reimbursement allowance for private insurance carriers and agents participating in the program.

The major bill p;

assed is the 21st Century Flood Reform Act of 2017 (H.R. 2874), which was introduced by Rep. Sean Duffy (R-Wis.), chairman of the House Financial Services Subcommittee on Housing and Insurance. It passed by a vote of 30-26. It is a broad proposal that incorporates many of the ideas in individual bills. It aims to put the NFIP on stronger financial footing; improve flood mapping, mitigation efforts and claims handling; and encourage greater private insurer participation in the market

Please enjoy the full article below;

http://www.insurancejournal.com/news/national/2017/06/16/454822.htm#

Please call L & S Insurance at 1-888-244-7400 for free quotes on Home Insurance, Auto, Flood, Private Flood, Business & Commercial & Life & Financial products as well.

Almost 1 million customers were still without power in the U.S. Southeast Monday after Hurricane Matthew brought devastating wind gusts and flooding to North Carolina, leaving at least 10 dead in the state.

Duke Energy Corp., owner of North Carolina’s largest utilities, estimated power may not be restored to some customers before Sunday. More than 153,000 were blacked out in Florida as of about 2 p.m. New York time Monday, with about 675,000 without power from Georgia to southeastern Virginia, according to data compiled by Bloomberg from utility websites.

The National Weather Service on Monday issued flood warnings for parts of central and eastern North Carolina after as much as 15 inches (38 centimeters) of rain in some spots. The storm made landfall Saturday in South Carolina and has now dissipated in the Atlantic.

“Flooding, downed trees and power lines have resulted in major power outages to our region, and we have discovered more than 800 broken poles and miles of downed lines – and still counting,” Duke Energy storm director Bobby Simpson said in a Sunday statement. Flooded roads blocked some repairs, the company said.

Matthew appears to have spared Florida’s citrus belt, with “negligible” harm to oranges and about 10 percent of the grapefruit crop blown from trees, Florida Citrus Mutual spokesman Andrew Meadows said Monday by phone. Flooding will delay the cotton harvest in North Carolina and South Carolina and may reduce its quality, Kyle Tapley, a meteorologist for MDA Weather Services, said by phone Monday from Gaithersburg, Maryland.

 

Please enjoy the full article below!

http://www.insurancejournal.com/news/southeast/2016/10/10/428931.htm

A tornado picked up a southbound vehicle on Florida’s Turnpike near Fort Lauderdale Wednesday morning and dropped it in the northbound lane as a line of severe storms hit the area, officials said.

They said the storms tossed cars and trucks, knocked down trees and damaged some roofs.

Please call L & S Insurance at 1-888-244-7400 to get free quotes on Insurance for Home, Auto, Flood, Business & Commercial, & Life & Financial products as well. Please enjoy the full article below!

http://www.insurancejournal.com/news/southeast/2016/01/29/396790.htm

The state of Florida is marking a big milestone with the official end of the 2015 hurricane season – 10 years without a major hurricane making landfall in the state.

The Miami Herald reports that the hurricane-free streak is a new record for the state.

Experts say Floridians shouldn’t count on the streak continuing. Michael Brennan of the National Hurricane Center has been exceptionally lucky and that residents should always be prepared for the possibility of a storm hitting the state.

Please call L & S Insurance at 1-888-244-7400 for quotes on Home Insurance, Auto, Flood, Business & Commercial, & Life & Financial products as well.

Please enjoy the full article below.

http://www.insurancejournal.com/news/southeast/2015/12/01/390411.htm

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