Harvey's impact on insurance rates in the Mid

  • Harvey's impact on insurance rates in the Mid

Harvey's impact on insurance rates in the Mid

People in those areas and near them have complained for years that the premiums are too high, though they would be much higher still if not subsidized by the federal government.

Fitch Ratings has said that hurricane Harvey is unlikely to result in any ratings downgrades of property/casualty re/insurers as the storm is expected to be an earnings event, and while the insured loss is likely to fall within insurers' retentions, the storm could wipe out the National Flood Insurance Program's (NFIP) reinsurance program. The private market has started to play more of a role in the program, with the NFIP tapping reinsurers such as Swiss Re AG, Munich Re and Alleghany Corp.'s Transatlantic Re to provide backstop for flood insurance.

Insurers are bracing for a massive amount claims from Harvey after the storm's winds and surge pounded the Texas coast and dumped torrents of rain on the Houston area, flooding homes and prompting more than 1,000 rescues of stranded residents.

If you buy your policy through the National Flood Insurance Program, coverage will kick in 30 days from the purchase date.

Flood insurance: How it works and.

And, since 2005, the claims have kept building up. By the 1960s, after costs kept racking up, there was pressure to cut back on that aid. That means families with flooded basements, soaked furniture and water-damaged walls will have to dig deep into their pockets or take on more debt to fix up their homes.

CBS News Senior Business Analyst Jill Schlesinger said anyone who is at risk of flooding should be prepared for the worst.

At the same time, President Donald Trump has demanded funding for a wall along the border with Mexico, while pushing Congress to enact big tax cuts he argues will stimulate economic growth.

But, she noted, those discounts are getting phased out. But it can be a hard to get paid.

At this point, there's no foreseeable way the program is ever going to be able to repay its debt without huge increases in rates, Kousky said. Those reflect the risks inside each state's borders.

Earlier this month CoreLogic said home prices in four metropolitan areas - including Houston - were overvalued, deeming the current trajectory of prices unsustainable.

"If it is safe to return to your property and inspect damage, file written notice of your claim with your insurance company before September 1st to try to preserve at least some of your legal rights".

The NFIP has another problem, in that the maps it uses to determine the areas most at risk of flooding are out of date.

"Report a claim just so we can get you into the queue and we can assist you as fast as possible", said Rebecca Hirsch with USAA.