Hurricane Updates


Please call Lee at Acentria Insurance at 954-351-1960 or my cell at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life , group & financial products as well.

A U.S. government weather forecaster said on Thursday that La Niña conditions are likely to persist through the Northern Hemisphere winter.

La Niña is characterized by unusually cold ocean temperatures in the equatorial Pacific Ocean and is linked with floods and droughts. It is the opposite phase of what is known as the El Niño Southern Oscillation (ENSO) cycle.

The National Weather Service’s Climate Prediction Center (CPC) in its monthly forecast pegged the chance of La Niña developing at about 85 to 95 percent, with a transition to ENSO-neutral expected during the spring.

“Based on the latest observations and forecast guidance, forecasters believe this weak-to-moderate La Niña is currently peaking and will eventually weaken into the spring,” the agency said.

The agency last month projected the chance of the phenomenon developing through the Northern Hemisphere winter at about 80 percent, with a transition to ENSO-neutral most likely during the mid-to-late spring.

La Niña emerged in 2016 for the first time since 2012, before fading in early 2017.

Please enjoy the full article below;

https://www.insurancejournal.com/news/national/2018/01/12/477026.htm

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

Ross Hancock sold his four-bedroom house in Coral Gables, a city of pastel luxury at the edge of Miami, because he was worried that sea-level rise would eventually hurt his property’s value. He and his wife, Darlene, downsized to a small condo on Biscayne Bay, perched atop one of the highest coral ridges in the area. There, he presumed, they would be safer.

Then Hurricane Irma hit.

The September storm pushed water onshore with such force that it penetrated the seams of Hancock’s building, defeating stormproof windows and damaging a third of the units. It knocked out the elevators, ruined the generator, and flooded the parking lot. Months later the park next door remains strewn with mangled yachts hurled from from the ocean.

Hancock’s unit was spared, but he’s facing a potential $60,000 bill from the condo association for his share of what insurance won’t cover. Now, four years after leaving Coral Gables, he and his wife want to move again—this time, out of Florida. But more than two months after listing their property, they haven’t found a buyer.

“It’s not the greatest time to be showing it,” Hancock said, noting the damage to the building. Still, Irma convinced him that it doesn’t make sense to wait. “At some point, we won’t be able to sell.”

Decisions by people such as Hancock to sell their homes demonstrate that one of the great mysteries of climate change isn’t scientific but psychological: When will the growing risks associated with rising seas and more severe storms begin to affect home values in otherwise desirable coastal markets?

Nowhere is that question more pressing than South Florida, which has some of the country’s priciest properties—and some of the most vulnerable. A state built on real estate speculation, whose chief attribute was proximity to the water, now faces a whole new problem: There’s not enough land, high enough above the water, for its residents to pull back from the rising seas. By the end of the century, database company Zillow Group estimates, almost a half-million Miami homes could be—literally—underwater. That’s more than anywhere else in the country.

In a working paper posted this month on Social Science Research Network, an online repository of academic research, professors from the University of Colorado at Boulder and Pennsylvania State University found that homes exposed to sea-level rise sell at a 7 percent discount compared with equivalent but unexposed properties.

Please enjoy the full article below;

https://www.insurancejournal.com/news/southeast/2018/01/02/475789.htm

Please remember to contact Lee at 954-351-1960 or 954-270-7966 for free quotes on Home Insurance, Auto, Flood, Private Flood, Car, Business & Commercial & Life & Financial and Group Health quotes as well.

What is MAAC-Market accountability Advisory Committee. This is a committee of 9 people appointed from various associations in Florida including FAR and FAMB. What Citizens Insurance is doing, should be doing and how to improve what Citizens does is our role. We make recommendations to the actual board of Directors of citizens of which there are also 9 people, but they are appointed by the house, senate, Governor and others who have final say as to Citizens policy including rates. Since I have only attended my first meeting on 12/12/17, my information will grow over time. What I have learned and soon more will is that Citizens is changing and it looks for the better for the consumer. Training on programs like the new managed repair program & AOB are now mandatory for all appointed agents and not doing required training will mean you cannot do business with Citizens. Also, some agents intentionally misquote policies in several ways which can hurt a consumer and make the shopping for Insurance process more complicated, this will soon be rectified as a warning system which can take away the ability to do business with Citizens. These are all steps in the correct path and need to be expedited as more is coming. For Homeowners who currently have homes built from 1979-1994, you may have Poly Pipes in your home which Citizens has been accepting if the home is 30 years or less in age. That program will cease by the spring of 2018 which will make the sale and purchase of those homes more complicated. Lastly was the topic of reinsurance. This is very complicated, but Critical for Florida as most of our Florida based Carriers do not have the money to pay for a Hurricane Irma , Andrew or Wilma and reinsurance picks up the tab. This cost is currently about 60% of your total premium so it is huge. The carriers will now be required to keep more reinsurance and the new assumption could be ,” what if Irma hit Dade county and came up through the middle of the state, what would be the financial impact”. Understanding this and knowing that not only will each carrier need more reinsurance, but the costs are also increasing after the last 2 years, means that Home Insurance rates will also be rising and it could be very significant. It is so important for every Homeowner to shop Insurance rates each year to find the best coverage you can at the best rate and in that order. if you do not have the correct coverage then your claim will not be paid properly. I know the costs are sometimes high and tough, but remember that if you cannot afford the premium, you cannot afford the claim if it happens to you. Please be smart, and safe and feel free to contact me with any questions.

 

Thank you,

 

Lee

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

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#

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