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Fire & Flood: The Impact of Drought

Posted By Administration, Wednesday, September 23, 2015

 

An interesting fact popped out of California last week. The state as you know is in the middle of a severe drought and the driest conditions in decades. As a result the California Department of Insurance notes the number of homeowners carrying flood insurance has fallen by 12% since the drought officially began in 2012.

 

It has California Insurance Commissioner Dave Jones concerned.

 

Nancy Kincaid of the department said the flood insurance cancellations are short-sighted and dangerous. With natural disasters, it is not a question of if but of when, she said.

 

Dry ground does not absorb water as well as ground possessing a normal amount of moisture and that can make flooding worse when water finally comes. When the ground is dry it doesnt absorb rainfall as well as when it is moist, Kincaid added.

 

And El Nino is coming. Weather forecasters say California will get heavier than usual rains this winter. Ricardo Pineda of the California Department of Water Resources said, Many droughts end with floods. After drought and after fire, even a small amount of rain can result in flooding. If you have flood insurance and you live downhill from a burn area or live near a levee or a flood wall, you should definitely keep your flood insurance.

 

Though we have no statistics saying one way or another, no doubt other states in the PIA Western Alliance are experiencing similar drops in flood insurance.

 

Source link: Insurance Business America

Tags:  Fire & Flood: The Impact of Drought  Fire Insurance  Flood Insurance  Insurance Content  Insurance Industry  Insurance News  Weekly Industry News 

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