Florence likely to expose gaps in flood insurance
An analysis of federal flood insurance records by The Associated Press found there were roughly 5.1 million active flood insurance policies in the
The Carolinas had modest gains — a 2.5 percent increase in
But large gaps in coverage remain.
After blowing ashore as a hurricane with 90 mph (145 kph) winds, Florence virtually parked itself much of the weekend atop the Carolinas as it pulled warm water from the ocean and hurled it onshore. Storm surges, flash floods and winds scattered destruction widely.
Most of the gains observed in the federal flood insurance data over the past 12 months occurred in
"That's terrific. Nothing sells flood insurance like a storm," said
Still, federal officials say there are too many Americans in vulnerable areas who lack flood insurance — even after storms such as Sandy, Matthew and Harvey caused widespread property damage and financial losses with storm surge and rainfall. A look at the five-year and 10-year trends shows a decline in the number of flood insurance policies nationwide.
Property insurance typically doesn't cover flooding, and flood insurance remains by and large a federal government program run by the
In the five years before Hurricane Harvey walloped
Data show that even with the increase in flood insurance coverage over the past year, the number of homes covered is down 3 percent in
Researchers and insurance experts say many Americans choose not to get flood insurance because of a belief that flooding will not happen to them, or if it does, federal disaster assistance cover their losses.
But federal disaster relief typically consists of low-interest loans — money that must be repaid. The maximum amount of disaster assistance available to an individual or household is
"We have been working for the last couple years to close the insurance gap, but still not near enough people have necessary coverage. We still have a lot of work to do," said David Maursted, the current director of the government's flood insurance program, in a conference call with reporters on Thursday.
Because Hurricane Florence hit the Carolina coast as a less powerful Category 1 storm, damages are expected to be less severe than originally estimated. Property data company
But the potential property damage in the Carolinas could once again strain the financial health of the nation's flood insurance program.
Starting with Katrina in 2005, a series of catastrophic storms have forced the program to pay out billions of dollars more in claims than it receives in premiums. Last year, the damages from Hurricanes Harvey and Irma caused the program to reach its
In renewing the flood insurance program's mandate last year,
Maursted said NFIP insurance companies are already deploying claims agents and adjusters to the area and they do not expect any delays in processing claims. Policyholders who have flood insurance should file a claim with their insurance company as soon as they feel it's safe enough to do so.
AP Data Journalist
WHAT’S HAPPENING: Rivers pose epic Florence flood risks
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