Posted on 06/26/2008 6:29:58 AM PDT by Ebenezer
In a sweeping proposal, Nationwide Mutual Insurance Co. has asked Congress to allow private companies to begin selling flood coverage in hopes of getting more people to buy it, reducing the burden on the federal treasury in times of disaster and avoiding disputes over the causes of hurricane damage.
Although the proposal comes as floods are destroying towns across the Midwest where only about 17 percent of homes have flood insurance, the program has its roots in Hurricane Katrina's watery devastation and the ubiquitous flood versus wind disputes along the Gulf Coast.
Nationwide, which does not do business in Louisiana, said it began working on a proposal for the industry about seven months ago when it realized that customers would prefer to be able to buy everything they need to insure their homes in one place.
(Excerpt) Read more at nola.com ...
Pelican State ping
There is no point in getting flood insurance as the feds will bail you out no matter what. Whenever you have massive flooding, fires, earthquakes, or hurricanes the feds step in and pay for everything. It seems like the only people who get screwed are those hit by tornadoes.
Well that is good news. Especially since insurers don't make their profits from premiums now.
the U.S. Department of Treasury has proposed allowing insurance companies the option to be regulated in Washington rather than by the states
Now there's a nightmare of efficiency just anxious to happen.
Everyone should have flood insurance.
My wife is still paying off the loan from FEMA after her house flooded in North Carolina during Hugo. Big help-NOT.
Obviously we aren’t getting out of the public assistance business so offer loans instead of grants. If people have to pay the money back they will be more careful about what they need and there will be money to help the next victim. Do it with all welfare. Help someone back on their feet but insist they pay back food assistance, medical care help, pell grants etc.
People thinking they are safe because they are in 100/500 year flood areas but it is a false security IMO.
I agree. If you’re in a high flood plain, then the cost of flood insurance should be low, but you should still have it. I’ve got it, even though I am in the 500 year flood plain.
“Everyone should have flood insurance.”
That would be a great way to redistribute wealth!
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