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FEMA urges at-risk Floridians to secure & maintain flood insurance

25th July 2018 - Author: Staff Writer

As the hurricane season reaches its midway-point, the U.S Federal Emergency Management Agency (FEMA) has called on Floridians to secure and maintain flood insurance.

Flooded sign image via 89.3KPCCFEMA states that only half of Florida homeowners in high-risk areas had insurance against flooding before hurricane Irma made landfall late last year.

Concurrently, however, the National Flood Insurance Program – a government-administered program that protects against flooding – has more policies in Florida than any other state.

“Floods are the most common and costly natural disasters in the United States. A flood-insurance policy protects policyholders financially even when a presidential disaster is not declared or if they live in a county that was not designated for federal assistance.”

FEMA estimates that current NFIP claims for Irma damage total more than $1.1 billion, with an average closed claim payment of $49,740.

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NFIP recently launched its first catastrophe bond to transfer risk to the capital markets. Issued via FloodSmart Re, a Bermuda domiciled special purpose insurance vehicle, the catastrophe bond is an attempt to secure $275 million of reinsurance protection for FEMA.

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