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

If you would like to follow the increase in streamflows around NJ (in case the weather forecast comes true), here’s the official US waterdata site for NJ. The little green and orange dotes (average and low flow) will turn blue, or black if they’re going to flood. Or check us at www.gbwinsurance.com  if you have any questions.

http://waterdata.usgs.gov/nj/nwis/rt

Congress got its act together and approved a one year extension of the NFIP. Not, perhaps, statesmanlike but good enough for the moment. Call a local flood insurance authorized agent if you need coverage. It still takes a month to go into effect.
www.gbwinsurance.com for more information

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

Since we are now about a month from the peak of hurricane season in the Northeast, remember it takes 30 days for flood insurance to go into effect. If your building is in or near a flood zone, and you would like to have flood insurance in place, do it now. If you would like to check, call us at 1-800-548-2329 and we can look at the NFIP (National Flood Insurance Program) map for you.

Insurance representatives can not increase your property coverage when a hurricane is approaching. Here’s a quote that came in this morning straight from one of our insurance companies:

“Tropical Storm or Hurricane Binding Authority Restriction: When a tropical or hurricane “storm watch” or “storm warning” (as defined by the United States Weather Bureau), has been issued by the National Weather Service, the area where an Agent does business may be adversely effected. For that reason, new coverage and/or increases in existing coverage binding authority is suspended automatically during the period of time that area is subject to a tropical or hurricane “storm watch” or “storm warning.” Authority is automatically reinstated 24 (twenty-four) hours after the National Weather Service lifts the “storm watch” or “storm warning”. This severe weather binding authority restriction applies to any personal or commercial property that may be subject to loss or damage caused by: hurricane, tornado, windstorm, flood or surface water. Agent should refer any questions pertaining to this Tropical Storm or Hurricane Binding Authority Restriction to Company.”

So, get your property values right before storms approach. And remember that the National Flood Insurance Program (if those @#$%^& in Congress get their act together and reauthorize it) takes 30 days to put flood coverage in place. You really have to think ahead if you want storm protection.

Give us a call at 1-800-548-2329. www.gbwinsurance.com

We’re getting pretty tired of Congress (that’s probably a general small business comment). Once again they have let the National Flood Insurance Program (NFIP) expire, leaving people who need flood insurance twisting in the wind. Here’s a quote from Travelers Insurance, which services part of the program.

“It appears that Congress will be adjourning without passing a bill that will reauthorize the National Flood Insurance Program (NFIP) beyond May 31, 2010. This means that the program WILL EXPIRE at midnight on May 31, 2010.
The Senate is not due to vote on the bill to extend the NFIP until at least Monday, June 7, 2010. This means we will be faced with another lapse in statutory authority to issue or renew flood insurance policies pursuant to the NFIP. Based on past experience, this lapse means that we will be unable to issue any new or renewal flood policies, or make coverage changes on existing flood policies after May 31, 2010.
PLEASE NOTE – In order for New Business, Renewals or policy changes to be effective, payment MUST be received BY TRAVELERS before midnight May 31, 2010.
FEMA has advised us to pend premium transactions received after May 31, 2010, until, and if, Congress and President Obama pass and sign the bill that re-authorizes the NFIP. New and renewal policies or coverage changes will go into effect at the earliest date, which is consistent with the receipt of premium and waiting period rules of the NFIP and the expected extension of authority for the NFIP. For applications made in connection with a mortgage loan, if the extension of the authority to issue flood insurance policies under the NFIP is granted retroactively, new policies will be issued effective as of the date of the loan closing. Additionally, if Congressional extension is granted retroactively, any claim for insurable losses suffered from the effective date for the policy term will be honored by the NFIP, even if the authority is granted after the date of such losses.
Please note that policies or coverage changes will only be effective if the extended authorization of the NFIP becomes law, which is expected. If Congressional extension is not granted within a reasonable period, premiums will be refunded. In this event, the requested coverage will not go into effect and no coverage will be afforded. “

Here’s the notice we just got from Travelers as a servicing company for the National Flood Insurance Program:

“Dear Travelers Agents,
We are pleased to report that the National Flood Insurance Program (NFIP) has been reauthorized to May 31, 2010. The bill that was passed by Congress and signed by the President includes retroactivity to March 1, 2010.
This means that Travelers Flood can resume processing transactions using the dates that items were received during the lapse for calculating effective dates. The National Flood Insurance Program waiting period rules will be used to determine all effective dates. We will resume sending renewal offers and will also send those renewal offers that were being held during the lapse.
Because Congress made the bill retroactive, Travelers will be allowed to go back to fix transactions that were impacted due to the lapse. March 1st and 2nd can now be used in determining effective dates according to the National Flood Insurance Program waiting period rules.
Travelers will continue to work with industry trades, legislators and FEMA to help support a longer term reauthorization of the NFIP prior to the expiration on
May 31, 2010.”