Yet though, while I’m sure in certain cases the insurance companies are going to lose but the massive amount of flooding shouldn’t and I seriously doubt will be covered. Flooding and Hurricane Damage? Now if the State and Federal Government rules in favor of flood damage people to have their claims paid I suppose in the long run that is okay. If in that event, it may very well cause Hurricane Ins or any property insurance to skyrocet in cost in any area in the Gulf Coast.

Which is fine by me and I’m sure the Insurance Companies are planning for the worst case scenario in this event. Once again, due too little to no Insurance claims outside of Florida till now for the most part has left the PC Insurance with large coffers full of stash and they’ll be able to pay out. I’m sure due to their proper management over the years and their large reserves available is driving these stories more then anything els. Ie: It’s a money grap. Yet the so called victims will pay for it when they witness higher then thought increases in their property insurance in coming days, if the Ins. Companies have to pay out flood insurance due to the Hurricane Clause.

I went back to read the article again just to be sure. The specific case mentioned in the article talked about a homeowner that had rain damage, there was no flooding of any neighboring houses, yet the claims adjuster said that the damage was due to flooding. Unless the homeowner was living in a hole, this doesn’t make much sense. The insurance company, however, got by with paying out a lot less.

The problems that the article mentioned deal with customers who have their policies fully in force. I agree 100% that insurance is not a charity, but it shouldn’t be a tormentor either.

After Hurricane Andrew in 1992, the insurance industry cried poor.

That Hurricane turned out to be the best thing for the industry. They were able to really spike their rates and the rate hikes far exceeded the claims payouts.

Great piece. Please stay in touch and stop by my frugal site
ciao