Insurance Commissioner Discusses Benefits of Private Flood Insurance
Insurance Commissioner
"Congressionally mandated changes to the federal government's National Flood Insurance Program (NFIP) to phase out subsidies for high risk properties, and the federal government's re-mapping of many neighborhoods and communities into what are known as special flood hazard areas which had never been there before, has led to the private market entering residential flood insurance for the first time," Commissioner Miller told the
"We are finding in many cases, private flood coverage, especially for homes re-mapped into special flood zone hazard areas which have never or rarely experience flooding, can be much less expensive than comparable NFIP coverage," Commissioner Miller said. She told conference attendees her department has created a one-stop shop for flood insurance information, and urged them to use this information when helping people look for ways to reduce their housing costs. The flood insurance information is at www.insurance.pa.gov, by clicking on "Flood" under "Insurance Coverage Resources."
Since creating this one-stop flood insurance page in February, approximately 15 insurers licensed in
"We have heard from a homeowner who was paying
Commissioner Miller cautioned homes in high risk areas that experience frequent flooding will likely not be insured through the private market, and need to stay with the NFIP. Also, under current federal rules, some mortgage lenders are reluctant to accept private coverage for homes in special flood hazard areas, and homeowners who want to get federal grants to undertake flood mitigation measures, such as raising their home on stilts, must have NFIP coverage.
Standard homeowners insurance typically does not cover flood damage, and while properties outside federally-designated special flood hazard areas are not required to have flood insurance, Commissioner Miller said this may be something homeowners may want to consider. Recent flooding in several north central
Commissioner Miller commended the conference attendees for working to help more
Consumers with questions or complaints can visit the
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