Private companies cover flood damage in all of the rest of the developed world except here. I don’t see why private companies can’t take a stab at it, with the NFIP becoming the insurer of last resort.
AIG, Chubb and Fireman’s Fund are all offering primary flood endorsements to their homeowner policies. Available for B,C, X flood zones….with much broader coverage than the NFIP form.
I don’t understand why they don’t cut the ******** and write a policy that covers all property damage from “named storms” including flood and wind. That would eliminate all the bickering and related problems with trying to bifurcate which damages are attributable to which cause.
In reality, is this anything more than a WYO company combining the coverage from a Homeowners policy and a Flood Policy into a single contract? This concept sounds great for the consumer, but…..
Nationwide would “reinsure” the flood portion? Where does it leave Nationwide when trying to collect from the reinsurer? Won’t the wind vs water conflict still exist at that level? Sounds like a recipe for financial disaster for the carrier when the reinsurer balks.
And what was that little comment about the rest of the policy being exempt from oversight? Market rates? Not an “end run” around state regulation?
Why don’ they sell a true “all risk” policy w/ no internal limits? Let the insurors seek reinsurance where they will and get the consumer out of it and put the underwriters back to work? It is much easier to underwrite upfront rather than after a loss.
Most of you need to return to your basic insurance principles. The reason flood is excluded is because it does not fit the definition of an insurable event. Flooding is widespread, catastrophic, and occurs often which would make it uninsurable. The government steps in for that and things like crop insurance because no one in the private sector could afford to charge the correct premium and have anyone buy it. If we truly had all-risk policies all of us would be looking for a new job because our industry would be destroyed.
We have updated our privacy policy to be more clear and meet the new requirements of the GDPR. By continuing to use our site, you accept our revised Privacy Policy.
Private companies cover flood damage in all of the rest of the developed world except here. I don’t see why private companies can’t take a stab at it, with the NFIP becoming the insurer of last resort.
Mark,
Too broad of a statement. Please give carriers and countries as I’d like to research this. Sounds fascinating.
AIG, Chubb and Fireman’s Fund are all offering primary flood endorsements to their homeowner policies. Available for B,C, X flood zones….with much broader coverage than the NFIP form.
Aware of that. Need to know about SFHA’s from primary carriers. Even DIC’s exclude or have high deductibles in SFHA’s.
I don’t understand why they don’t cut the ******** and write a policy that covers all property damage from “named storms” including flood and wind. That would eliminate all the bickering and related problems with trying to bifurcate which damages are attributable to which cause.
In reality, is this anything more than a WYO company combining the coverage from a Homeowners policy and a Flood Policy into a single contract? This concept sounds great for the consumer, but…..
Nationwide would “reinsure” the flood portion? Where does it leave Nationwide when trying to collect from the reinsurer? Won’t the wind vs water conflict still exist at that level? Sounds like a recipe for financial disaster for the carrier when the reinsurer balks.
And what was that little comment about the rest of the policy being exempt from oversight? Market rates? Not an “end run” around state regulation?
I was born at night, but not last night.
I wish they would add Earthquake as well to make it affordable for all.
Current payments made to Katrina flood victim policy holders ONLY from National Flood with about 98% paid – $15,760,144,120.
Total premiums paid COUNTRYWIDE into the Nationa Flood Insurance Program in 2004 – approximately – $2,000,000,000.
Total shortfall – $13,760,144,120.
So how much would that cost in reinsurance?
Why don’ they sell a true “all risk” policy w/ no internal limits? Let the insurors seek reinsurance where they will and get the consumer out of it and put the underwriters back to work? It is much easier to underwrite upfront rather than after a loss.
Most of you need to return to your basic insurance principles. The reason flood is excluded is because it does not fit the definition of an insurable event. Flooding is widespread, catastrophic, and occurs often which would make it uninsurable. The government steps in for that and things like crop insurance because no one in the private sector could afford to charge the correct premium and have anyone buy it. If we truly had all-risk policies all of us would be looking for a new job because our industry would be destroyed.