Fewer than 10 Percent of Homeowners Affected by Irene had Flood Insurance According to new J.D. Power and Associates reports, fewer than 10 percent of homeowners in the path of Hurricane/Tropical Storm Irene carried flood insurance. Even in risky areas like the Gulf of Mexico region of the country, only about a quarter of the residents carry flood insurance. Worse, now that hurricane season is in â€œfull throttle,â€ J.D. Power warns that many homeowners may not be able to obtain coverage before another storm hits thanks to a 30-day waiting period between when an insurance policy is purchased and when it goes into effect. Jeremy Bowler, senior director of insurance practice at J.D. Power, fears that â€œmany may find their claims deniedâ€ when they file damage claims in the wake of Irene.
In the United States, flood insurance is the exclusive province of the federal government and handled by the National Flood Insurance Program (NFIP). However, in the wake of Irene the NFIP, which was already foundering thanks to Katrina, could end up going under. That would leave homeowners literally defenseless when it comes to flood insurance. â€œBecause the federal government undercut the private sector, it is now the only insurer in the floodplain management area,â€ explains former FEMA director Joe Allbaugh, adding that NFIP spends â€œmost of its time in the redâ€¦because itâ€™s another government program [where] the premiums that are charged are way under market value.â€
How do you think that flood insurance should be handled?
FromÂ : Â Â Â REJournalOnline!