Hello Marvelous People:
Just a brief blog message to keep you abreast of current events with The National Flood Insurance Program. As always, our team stays committed to helping you with any of your concerns. We are grateful to be working with you.
If you still do not have Flood Insurance, it's not too late to get it before this Hurricane season becomes active.
Special thanks to David Micheler for his efforts in writing this article.
Marvin LeBlanc
Louisiana Insurance Commissioner Jim Donelon Addresses
Kiwanis DawnBusters
STATE OF LOUISIANA INSURANCE COMMISSIONER
This morning (June 29, 2011) our guest speaker at our Kiwanis DawnBusters meeting was State of Louisana Commissioner of Insurance, Jim Donelon. He spoke about the National Flood Insurance Program (NFIP) this morning and the importance of getting the program re-authorized before September 30th of this year.
On the topic of flood insurance Jim first wants to explain to people the importance of heeding the warnings of local officials and evacuating when potential storms threaten our area. He explained that most of the people who did not evacuate for Katrina did so because of bad experiences with
contra flow during the evacuation for Ivan the previous year.
The system has been improved since then and is now much better.
Jim explained the great value that flood insurance is to the home owner; the average home owner pays about ten dollars a month. Even with the low cost only 40% of land owners in Louisiana carry flood insurance.
However, the NFIP is currently 18 billion dollars in debt with 15 billion of that coming from Katrina and Rita. There is a fight in the country to re-authorize the program because a small amount of people benefi t from it. Only 12 states are net consumers of the NFIP the other 38 states have pay in and have never collected.
The recent floods this year have opened eyes across the country that just because you do not live on the coast does not mean you are free from the potential of flooding. Off course the other argument is that everyone pays into a program that only a few benefit from.
Mr. Donelon was asked about State Farm’s roll in the NFIP and if they were still selling flood insurance. He explained that State Farm did not stop selling flood insurance they just announced they will no longer adjust flood claims for the NFIP. State Farm was accused of shifting liability to NFIP for damage that they should have been covered from wind.
After Katrina they were allowed to have the same adjuster adjust wind and flood damage.
By David Michler
