The National Flood Insurance Program will undergo the most significant overhaul it has seen in more than 50 years. Changing weather patterns, stronger storms, and more risk of flooding have led to this sweeping change.
According to CNBC, "FEMA provides $1.3 trillion in coverage for more than 5 million policyholders" in the United States. Anyone who owns a home in a designated flood zone must purchase the insurance, and some voluntarily pay for the additional coverage.
Beginning October 1, policyholders will see a shift in the pricing structure that will now factor in climate change. The United Nations recently published the first of a four-part study about the human influence on the global climate system.
FEMA is now taking this study into account. Things like stronger hurricanes and heavier rainfall are said to be changing risk factors for property owners. FEMA now says future catastrophic models that shed new light on a rising sea level, drought, and wildfire will now be considered when determining risk.
High risk means higher cost.
FEMA also says they have evaluated rates and found a need to adjust based on these risk factors. Customers who are now in an area deemed to have a higher risk will face an increase.
Property owners need to understand their risk and ensure they have the proper insurance coverages to recover from any type of disaster.
"If you live in a declared flood zone, your mortgage company may require you to purchase flood insurance. A significant number of those not required to insure for flood do not insure themselves, and we see the devastating ramifications when we are asked to help," said Jeffrey O'Connor, Executive Vice President, Sill Public Adjusters.
Sill is the leading public adjusting firm in North America, and our team hears from property owners all the time who find themselves dealing with flood damage. As public adjusters, we fight for property owners who are dealing with property damage.
RELATED | What is a public adjuster?
Our team features insurance policy and building damage experts that are fully licensed in the insurance industry. If your property has been damaged, you can contact Sill to get expert help with your insurance claim.
We can provide a free, no-obligation review of your current insurance policy to determine your coverages. We can also assess your property damage to determine if we can help with your recovery efforts quickly.
If we work with you, we can help settle your claim much faster than your will on your own. Our clients also see a much more significant settlement amount from their insurance company.
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We represent hundreds of commercial and large residential property owners throughout their claims each year. We have handled any damage, including flood, fire, collapse, hurricane, tornado, and vandalism.
If your property is damaged, you can call Sill 24/7; our expert team can respond to any location within just hours. When you work with Sill, we get you the settlement you deserve.
SOURCE | CNBC.com