23 Jul Analyzing Hurricane Barry’s Impact on Housing
Analyzing Hurricane Barry’s Impact on Housing
New data indicates that Hurricane Barry caused between $500 Million and $900 million in flood and wind losses. According to CoreLogic, flood loss for residential and commercial properties in Louisiana is estimated to be between $200 million and $400 million, and insured flood loss from private insurers is estimated at less than $100 million.
Insured residential and commercial flood loss covered by the NFIP is estimated to be between $100 million and $200 million, but 20% of residential flood loss is uninsured. CoreLogic states that uninsured flood loss is estimated to be approximately $100 million, while approximately 500,000 total residential and commercial property policies are in force through the NFIP.
Wind losses, not covered by the NFIP, are expected to total between $300 million and $500 million. Insured flood and wind losses, excluding National Flood Insurance Program (NFIP) losses, are between $300 million and $600 million.
Many homeowners may be unaware that flood insurance is a premium provided through the National Flood Insurance Program (NFIP), rather than an included feature in their homeowner’s insurance. For example, wind damage is covered in standard insurance, and flood is a separate coverage which is not mandatory outside the designated Special Flood Hazard Areas (SFHAs). A recent survey by insuranceQuotes.com attempts to shed some light on what homeowners should know when it comes to their homeowners insurance policy, including flood insurance.
According to the NFIP, a flood is “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is your property) from overflow of inland or tidal waters, from unusual and rapid accumulation or runoff of surface waters from any source, or from mudflow.”
The NFIP’s availability to homeowners may improve in coming months, especially for those impacted by natural disasters. Recently, the House Financial Services Committee unanimously approved two bills to reform and reauthorize the NFIP. H.R. 3111 would bring improvements to the NFIP appeals process, accountability, and transparency of claims process in the aftermath of Hurricane Sandy, and H.R. 3167 would reauthorize the NFIP for five years and includes numerous reforms to increase affordability, mapping and modernization.