NFIP Repetitive Losses Growing

The Natural Resources Defense Council (NRDC) pays close attention to losses, and payouts for those losses, by the National Flood Insurance Program (NFIP). The NRDC’s latest report, Losing Ground said less than 1% of the book of business of the NFIP end up as severe and repetitive losses.

However, those properties account for more than 10% of the NFIP’s claims. Worse, since 2020, the number of homes in that criteria has jumped 20%.

Here’s how the NFIP defines severe repetitive loss properties (SRLP):

  • Definition A: Four or more separate claim payments for the building and its contents of more than $5,000 each
  • Definition B: Two or more separate claims payments for the building only where the total of those payments is more than the value of the property

Anna Weber is a senior policy analyst at the NRDC. She says there are 32,150 properties in the U.S. meeting definition A. For definition B, the number is 18,829.

“The bottom line is that the flooding risks to communities are increasing faster than officials are dealing with them,” Webster said. “Homeowners desperately need new measures that can help them afford flood insurance, reduce the risk of flooding and give those who want it a real opportunity to move to safer ground.”

The report found that 20% of the SRLP’s are outside of the NFIP and the Federal Emergency Management Agency’s (FEMA) designated flood zones.

Tennessee and Texas are the two states seeing the most repeated flooding in areas the FEMA and NFIP maps say are at lower risk for flooding.

When it comes to flood-prone properties, the hurricane risk states of Florida, Texas and Louisiana are seeing the biggest flood insurance increases by the NFIP. And half of the SRLP payouts are in Texas and Louisiana.

“The dramatic increase in the number of households facing costly and frustrating flood damage should be a wake-up call for lawmakers, FEMA and state and local officials,” Weber said.

That statement comes from statistics in the report showing around 75% of SRLP properties are not getting any kind of assistance to reduce and mitigate flood risks.

Even worse, many of the owners of these homes have canceled, or not renewed, their flood insurance policies.

Source link: —

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


More Industry News