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by Jessica Abbott
Virginia News Source Staff Writer
FEMA and the National Flood administration are putting together a new program to help reduce the claims made on flood insurance.
The basic overview of this program will give police holders the option of having flood insurance until proven to be too much of a liability.
Currently the programs plan is to “To reduce or eliminate claims under the NFIP through project activities that will result in the greatest savings to the National Flood Insurance Fund (NFIF)”
This program was passed in 2004, authorized by the Bunning-Bereuter-Blumenauer, called the Flood Insurance Reform Act. This Act amended the National Flood Insurance Act of 1968.
The goal was to reduce or eliminate the long term risk of flood damage to severe repetitive loss of those insured with the NFIP.
However NFIP has not until the point taken any action with the amendment until now.
The NFIP is starting trial runs of this program in Virginia Beach to see where the premium can be made up.
Policy Holders that fall under this program are as follows:
1. That has at least four NFIP claim payments (including building and contents) over $5,000 each, and the cumulative amount of such claims payments exceeds $20,000; or
2. For which at least two separate claims payments (building payments only) have been made with the cumulative amount of the building portion of such claims exceeding the market value of the building.
For both (1) and (2) above, at least two of the referenced claims must have occurred within any ten-year period, and must be greater than 10 days apart.
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