GBW Insurance's Blog

In case the East Coast did not learn anything from 2011, here we are at the start of the traditional hurricane season.  We at GBW Insurance are busy going to seminars about hurricane preparedness and the National Flood Insurance Program (NFIP).  If you’re not ready, or would like some suggestions, head to our page of advice and connections (click here).

And the answer is… most of the time it takes 30 days to get Flood Insurance.  And insurance companies shut off new and addtitional business about 48 hours before a hurricane hits.  So neither the NFIP nor private companies are available just before a hurricane arrives.  Plan ahead.  We can help.  1-800-548-2329

Here we go again. Congress has no problem inconveniencing property owners and business people. These repeated disruptions come about because two senators play chicken with the re-authorization, trying to hold up the bill to get their version passed. Their version doesn’t have support and would bankrupt the program even more deeply, but facts are not a problem in Washington. Here’s what we just got from Travelers Insurance, which is one of the servicing companies.

“Dear Travelers Flood Agent,
We are writing to provide you with an update on the National Flood Insurance Program (NFIP).
As you are likely aware, in July, Congress passed a bill that extended the statutory authority to issue flood policies pursuant to the NFIP. The NFIP is due to expire again on September 30, 2010.
Over the past several months, we have continued to work with the industry trades and FEMA, both
of which are hopeful that Congress will pass another extension prior to the September 30, 2010 deadline. While we are hopeful that Congress will pass the necessary bill, we believe it is important
to provide you with the necessary information in the event Congress does not take action prior to the expiration of the Program.
Under existing statutory authority, we can process and issue policies for all new applications, renewals and endorsements for coverage changes, provided they are accompanied by the appropriate premium and received in our offices on or before September 30, 2010, regardless of the actual effective date of the policy.
Should Congress fail to extend the program on or before September 30, 2010 we would not be able
to process or issue policies until the NFIP was re-authorized. “

Now we’re up to 6 insurance companies sending notice to us that they are freezing new property coverage in parts of the Northeast.

Here’s why the insurance companies are so nervous. If you go to the National Hurricane Center and click the Tropical Storm graphic, you see that the estimate is 30% chance of Tropical Storm winds hitting northern NJ, 50%+ for Long Island. http://www.nhc.noaa.gov/

This is the NOAA hurricane preparedness link.  http://www.nhc.noaa.gov/HAW2/english/disaster_prevention.shtml   It’s a little over the top for a Northeast hurricane grazing the shore, but worth looking over.

For quotes stop by our main site:  www.gbwinsurance.com  For Flood quotes: http://www.gbwinsurance.com/flood  For Business quotes: http://www.gbwinsurance.com/business_owners_policy

One hurricane seems to be heading to brush NY’s Long Island. A few minutes ago we got our second insurance carrier e-mail freezing property exposures until the hurricane has passed by. And it’s way too late to put on flood insurance since it takes 30 days to go into effect (unless you’re closing on a piece of property).

Inadequate insurance coverage on property is pretty widespread. Talk to your insurance advisor about how to value property and how to manage your risk.

And by the way, tape on windows is not actually very useful in preventing wind damage.

http://www.gbwinsurance.com/flood

1-800-548-2329

Flood is one of the most ignored insurance coverages. Therefore, when a flood happens, it is very likely to put a business out of business permanently, or damage a home that can not then be rebuilt.

The National Flood Insurance Program (NFIP) says that 25% of its claims are paid for buildings that are not in flood zones.  So every year many home and business owners are surprised to suffer flood damage, and most of them don’t have insurance coverage.  The NFIP defines flood as covering two or more acres or two or more contiguous properties.  So it doesn’t have to be the classic picture of a bursting dam.

Homeowners Insurance generally doesn’t cover flood damage at all, or most other “ground water” damage.

To get flood coverage, go to an agent representing the NFIP. If your house or business is not in an active flood zone, flood insurance is not very expensive compared to the value insured.  If it is in a flood zone, it is expensive but your bank will require it.

For homes, insurance for back-up of sewers and drains could be less than $100.   It covers just what it says, water coming into the house through sewers and drains.  That could happen in a situation where there was no flood by the definition of the NFIP.

For either coverage, insurance is a lot cheaper than the potential loss.

800-548-2329   www.gbwinsurance.com

For quotes stop by our main site:  www.gbwinsurance.com  For Flood quotes: http://www.gbwinsurance.com/flood  For Business quotes: http://www.gbwinsurance.com/business_owners_policy