David Lorms and Sandra Campos, Farmers Insurance Agents, spoke at REMAX about changes in Flood Insurance policies effective 10.1.09
Tuesday, September 15, 2009
Monday, September 14, 2009
Ike Study: Hurricane Storm Surge a Threat to More Coastal Properties
Government minimum flood elevation requirements for properties vulnerable to storm surge throughout the Gulf Coast region are woefully inadequate, according to a new study of property damage caused by Hurricane Ike, which struck the Bolivar Peninsula near Galveston, Texas, one year ago yesterday, Sept. 13, 2008.
The study, HURRICANE IKE: Nature's Force vs. Structural Strength, reveals that significantly more Gulf Coast homes and businesses are imperiled by disastrous flooding from storm surge than previously recognized by property owners or policymakers.
The report was issued by the Institute for Business & Home Safety (IBHS), which is an independent, not-for-profit applied research and communications organization supported by property insurers and reinsurers.
"Lessons learned from Hurricane Ike, which is the third-costliest hurricane on record, should be used by vulnerable communities from Texas to Maine to effectively reduce property damage in all hurricane-exposed areas," said IBHS President and CEO Julie Rochman.
"Simply put, the study found that many properties are not built high enough to withstand storm surges, tightly enough to prevent water from causing interior damage or strongly enough to prevent damage when high winds strike."
The IBHS study questions the current basis for elevating properties along the Gulf Coast and urges the National Flood Insurance Program (NFIP) to provide greater incentives for building well above the minimum elevations now in place.
More than 50 percent of the nation's population lives within 50 miles of the coast, with more than $9 trillion of insured coastal property vulnerable to hurricanes. The NFIP, which is the federal government program that provides flood insurance to homes and businesses, also establishes base flood elevation (BFE) levels for properties.
According to the study's findings, the BFE requirement for homes on Texas' Bolivar Peninsula ranged between 13 feet for homes built in the 1970s and 17 feet to 19 feet for homes built beginning in 1983. All but a handful of properties within the first few rows of houses from the coast, built to even the highest elevation requirements, were washed away during Hurricane Ike.
By contrast, the study found that 10 homes on the Bolivar Peninsula designed and built under IBHS's building code-plus new construction program, Fortified…for safer living, survived the storm sustaining minor damage. The Fortified homes had outdoor decks at 18 feet that were destroyed, but the homes, which were elevated to 26 feet, survived.
According to IBHS Senior Vice President of Research and Chief Engineer Dr. Tim Reinhold, most homes in coastal areas are built to or slightly above 100-year base flood elevations. "A 100-year flood means that the level of flood water has a 1 percent chance of being equaled or exceeded in any single year. However, it is well recognized in the engineering community that coastal homes built to this level have a 26 percent chance of being flooded or demolished over the life of a 30-year mortgage. This chance increases to about 40 percent in a 50-year period," Dr. Reinhold said.
"All it takes is a breaking wave about 2 feet above the base of a house to knock out the bottom floor or destroy a frame house," explained Reinhold. "The chances of destruction can be significantly reduced by employing what has been learned about the importance of proper elevation, which can be relatively inexpensive when building a coastal home," he continued. "For example, building to a 500-year base flood elevation reduces the chance of storm surge exceeding the base elevation to about 10 percent in a 50-year period."
In addition, the IBHS study achieves the following:
Provides a detailed, real world performance evaluation of superior construction techniques when tested by a truly extreme weather event;
Sets the course for rigorous laboratory testing to explore and resolve remaining issues with specific building materials and systems;
Proves (once again) the importance of enacting and enforcing strong, appropriate building codes - and proper elevation requirements in storm surge-prone areas; and,
Showcases the leading edge of construction and real estate markets, i.e., developers choosing to design buildings to the highest standard, because they understand the favorable cost/benefit ratio and want to meet consumer demand for safety and durability.
EDITOR'S NOTE: Download A copy of the full report is available online at: http://www.disastersafety.org/resource/resmgr/pdfs/hurricane_ike.pdf. A low resolution video of the Fortified homes that survived Hurricane Ike is also available.
Source: IBHS
The study, HURRICANE IKE: Nature's Force vs. Structural Strength, reveals that significantly more Gulf Coast homes and businesses are imperiled by disastrous flooding from storm surge than previously recognized by property owners or policymakers.
The report was issued by the Institute for Business & Home Safety (IBHS), which is an independent, not-for-profit applied research and communications organization supported by property insurers and reinsurers.
"Lessons learned from Hurricane Ike, which is the third-costliest hurricane on record, should be used by vulnerable communities from Texas to Maine to effectively reduce property damage in all hurricane-exposed areas," said IBHS President and CEO Julie Rochman.
"Simply put, the study found that many properties are not built high enough to withstand storm surges, tightly enough to prevent water from causing interior damage or strongly enough to prevent damage when high winds strike."
The IBHS study questions the current basis for elevating properties along the Gulf Coast and urges the National Flood Insurance Program (NFIP) to provide greater incentives for building well above the minimum elevations now in place.
More than 50 percent of the nation's population lives within 50 miles of the coast, with more than $9 trillion of insured coastal property vulnerable to hurricanes. The NFIP, which is the federal government program that provides flood insurance to homes and businesses, also establishes base flood elevation (BFE) levels for properties.
According to the study's findings, the BFE requirement for homes on Texas' Bolivar Peninsula ranged between 13 feet for homes built in the 1970s and 17 feet to 19 feet for homes built beginning in 1983. All but a handful of properties within the first few rows of houses from the coast, built to even the highest elevation requirements, were washed away during Hurricane Ike.
By contrast, the study found that 10 homes on the Bolivar Peninsula designed and built under IBHS's building code-plus new construction program, Fortified…for safer living, survived the storm sustaining minor damage. The Fortified homes had outdoor decks at 18 feet that were destroyed, but the homes, which were elevated to 26 feet, survived.
According to IBHS Senior Vice President of Research and Chief Engineer Dr. Tim Reinhold, most homes in coastal areas are built to or slightly above 100-year base flood elevations. "A 100-year flood means that the level of flood water has a 1 percent chance of being equaled or exceeded in any single year. However, it is well recognized in the engineering community that coastal homes built to this level have a 26 percent chance of being flooded or demolished over the life of a 30-year mortgage. This chance increases to about 40 percent in a 50-year period," Dr. Reinhold said.
"All it takes is a breaking wave about 2 feet above the base of a house to knock out the bottom floor or destroy a frame house," explained Reinhold. "The chances of destruction can be significantly reduced by employing what has been learned about the importance of proper elevation, which can be relatively inexpensive when building a coastal home," he continued. "For example, building to a 500-year base flood elevation reduces the chance of storm surge exceeding the base elevation to about 10 percent in a 50-year period."
In addition, the IBHS study achieves the following:
Provides a detailed, real world performance evaluation of superior construction techniques when tested by a truly extreme weather event;
Sets the course for rigorous laboratory testing to explore and resolve remaining issues with specific building materials and systems;
Proves (once again) the importance of enacting and enforcing strong, appropriate building codes - and proper elevation requirements in storm surge-prone areas; and,
Showcases the leading edge of construction and real estate markets, i.e., developers choosing to design buildings to the highest standard, because they understand the favorable cost/benefit ratio and want to meet consumer demand for safety and durability.
EDITOR'S NOTE: Download A copy of the full report is available online at: http://www.disastersafety.org/resource/resmgr/pdfs/hurricane_ike.pdf. A low resolution video of the Fortified homes that survived Hurricane Ike is also available.
Source: IBHS
Thursday, September 10, 2009
October 2009 Flood Insurance Program Changes
October 2009 Flood Insurance Program Changes
Changes to the NFIP Flood Insurance Rate Manual take effect twice a year, in May and October. This fall, the October 2009 manual revisions include changes to Standard Flood Insurance Policy rates and deductibles, which may impact your clients. It’s important for you to understand the changes so you can provide informed counsel to your clients and answer questions that may arise. The bullets below reflect just a few highlights. Click here for the full Flood Insurance Rate Manual that provides details for ALL of the October changes.
Rate and Premium Changes
Changes to standard flood insurance policy rates may result in premium increases for some of your customers, on policies written or renewed on or after October 1, 2009. On average, premiums will be increasing 8 percent; however, individual rate changes may vary – and some policyholders may see their premiums decrease. Preferred Risk Policy premiums are not changing.
It’s important to inform your customers that rate increases take effect regularly to ensure premiums stay aligned with NFIP costs. Premiums are also dependent upon a variety of factors such as the amount of coverage and deductible factors, among others. Consult your Flood Insurance Manual “Rating” section for detailed rating information and examples of how to discuss rate calculations with your customers.
Another factor driving increases are changes to the basic coverage limits for both residential and non-residential properties. Standard policy basic insurance limits are increasing for all categories of building and contents coverage as follows:
1-4 Family Dwelling Building Coverage: Basic limit increases from $50,000 to $60,000.
Residential Contents Coverage: Basic limit increases from $20,000 to $25,000.
Other Residential and Non-Residential Building Coverage: Basic limit increases from $150,000 to $175,000.
Non-Residential Contents Coverage: Basic limit increases from $130,000 to $150,000.
Deductible Changes
In addition to rate and basic coverage changes, all policyholders, including those with a Preferred Risk Policy, will see increases to their standard deductible. The NFIP is discontinuing the $500 deductible for all properties. New deductible levels are listed below:
Standard deductible increases from $500 to $1,000 for post-FIRM buildings and pre-FIRM buildings rated as post-FIRM in SFHAs.
Standard deductible increases from $500 to $1,000 for buildings in non-SFHAs.
Standard deductible increases from $1,000 to $2,000 for pre-FIRM buildings.
Owners of pre-FIRM properties can pay a surcharge and buy back the $1000 deductible, so make sure to communicate this option as pre-FIRM policies come up for renewal. It’s also important to alert your customers to these changes so that they are not surprised at the change in the event they need to file a claim. Be sure to remind them that while their deductibles have increased, they are still just a fraction of the cost of the average flood insurance claim. Just a few inches of water can cause tens of thousand dollars in damages.
Application Changes
Effective on or after October 1, 2009, there will be some changes to language in the standard application and endorsement forms. Changes to the Flood Insurance Application, PRP Application, and General Change Endorsement forms will capture additional community, building, and construction information.
New information must be provided for all grandfathered policies. Agents are asked to identify the type of grandfathering (i.e., Built in Compliance, Continuous Coverage) on the revised flood insurance application form and WYO companies must also include the grandfathering indicator on the front of the flood insurance policy declarations page. These requirements may help resolve disputes when a lender has a different flood zone determination than the agent or insured.
Other Insurance Program Changes
Two new building types have been added, elevated on crawlspace and non-elevated with subgrade crawlspace
Pre-FIRM buildings in Unnumbered Zone A areas with a basement, enclosure, or crawlspace may use Post-FIRM rates if the rates are more favorable to the insured. When policies affected in these zones up for renewal, you may want to consider rerating the policy applying the new rules. It may result in significant savings for your customers.
WYO Companies must report the source of the building construction date, e.g., Building Permit Date, Date of Construction, Substantial Improvement Date, etc.
Important DFIRM Change to Note: Paper FIRM to Digital FIRM (DFIRM) Transition
As of October 1, 2009, FEMA will provide a single paper flood map and Flood Insurance Study (FIS) to each newly mapped NFIP community. FEMA will convert all other distribution of maps and FIS reports for digital delivery. Consequently, paper FIRMs will no longer be available besides this one copy.
Agents, property owners and others will still be able to access the current and historic maps (for grandfathering) and print FIRMettes by visiting FEMA’s Map Service Center.
A more complete description of this change can be found here.
Click here for the new Flood Insurance Rate Manual that reflects these changes as well as additional information from the NFIP. Please email us at info@femafloodsmart.com with any questions.
Changes to the NFIP Flood Insurance Rate Manual take effect twice a year, in May and October. This fall, the October 2009 manual revisions include changes to Standard Flood Insurance Policy rates and deductibles, which may impact your clients. It’s important for you to understand the changes so you can provide informed counsel to your clients and answer questions that may arise. The bullets below reflect just a few highlights. Click here for the full Flood Insurance Rate Manual that provides details for ALL of the October changes.
Rate and Premium Changes
Changes to standard flood insurance policy rates may result in premium increases for some of your customers, on policies written or renewed on or after October 1, 2009. On average, premiums will be increasing 8 percent; however, individual rate changes may vary – and some policyholders may see their premiums decrease. Preferred Risk Policy premiums are not changing.
It’s important to inform your customers that rate increases take effect regularly to ensure premiums stay aligned with NFIP costs. Premiums are also dependent upon a variety of factors such as the amount of coverage and deductible factors, among others. Consult your Flood Insurance Manual “Rating” section for detailed rating information and examples of how to discuss rate calculations with your customers.
Another factor driving increases are changes to the basic coverage limits for both residential and non-residential properties. Standard policy basic insurance limits are increasing for all categories of building and contents coverage as follows:
1-4 Family Dwelling Building Coverage: Basic limit increases from $50,000 to $60,000.
Residential Contents Coverage: Basic limit increases from $20,000 to $25,000.
Other Residential and Non-Residential Building Coverage: Basic limit increases from $150,000 to $175,000.
Non-Residential Contents Coverage: Basic limit increases from $130,000 to $150,000.
Deductible Changes
In addition to rate and basic coverage changes, all policyholders, including those with a Preferred Risk Policy, will see increases to their standard deductible. The NFIP is discontinuing the $500 deductible for all properties. New deductible levels are listed below:
Standard deductible increases from $500 to $1,000 for post-FIRM buildings and pre-FIRM buildings rated as post-FIRM in SFHAs.
Standard deductible increases from $500 to $1,000 for buildings in non-SFHAs.
Standard deductible increases from $1,000 to $2,000 for pre-FIRM buildings.
Owners of pre-FIRM properties can pay a surcharge and buy back the $1000 deductible, so make sure to communicate this option as pre-FIRM policies come up for renewal. It’s also important to alert your customers to these changes so that they are not surprised at the change in the event they need to file a claim. Be sure to remind them that while their deductibles have increased, they are still just a fraction of the cost of the average flood insurance claim. Just a few inches of water can cause tens of thousand dollars in damages.
Application Changes
Effective on or after October 1, 2009, there will be some changes to language in the standard application and endorsement forms. Changes to the Flood Insurance Application, PRP Application, and General Change Endorsement forms will capture additional community, building, and construction information.
New information must be provided for all grandfathered policies. Agents are asked to identify the type of grandfathering (i.e., Built in Compliance, Continuous Coverage) on the revised flood insurance application form and WYO companies must also include the grandfathering indicator on the front of the flood insurance policy declarations page. These requirements may help resolve disputes when a lender has a different flood zone determination than the agent or insured.
Other Insurance Program Changes
Two new building types have been added, elevated on crawlspace and non-elevated with subgrade crawlspace
Pre-FIRM buildings in Unnumbered Zone A areas with a basement, enclosure, or crawlspace may use Post-FIRM rates if the rates are more favorable to the insured. When policies affected in these zones up for renewal, you may want to consider rerating the policy applying the new rules. It may result in significant savings for your customers.
WYO Companies must report the source of the building construction date, e.g., Building Permit Date, Date of Construction, Substantial Improvement Date, etc.
Important DFIRM Change to Note: Paper FIRM to Digital FIRM (DFIRM) Transition
As of October 1, 2009, FEMA will provide a single paper flood map and Flood Insurance Study (FIS) to each newly mapped NFIP community. FEMA will convert all other distribution of maps and FIS reports for digital delivery. Consequently, paper FIRMs will no longer be available besides this one copy.
Agents, property owners and others will still be able to access the current and historic maps (for grandfathering) and print FIRMettes by visiting FEMA’s Map Service Center.
A more complete description of this change can be found here.
Click here for the new Flood Insurance Rate Manual that reflects these changes as well as additional information from the NFIP. Please email us at info@femafloodsmart.com with any questions.
Wednesday, September 2, 2009
LuLu M Stevens Elementary 2009 Open House
.JPG)
David Lorms attended LuLu M Stevens Elementary School Open House on 9/1 passing out Child Identification Kits, New Parent Safety Kits, Bicycle and Driving Saftey Brochures and Fire Safety Coloring Books. Pictured with Principal Lucy Anderson.
Study: 1 in 10 Binge Drinkers Gets Behind the Wheel
National News
Study: 1 in 10 Binge Drinkers Gets Behind the Wheel
By Mike Stobbe
September 2, 2009
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One in 10 binge drinkers got behind the wheel the last time they drank heavily. And half of those drivers left from a bar, restaurant or nightclub after downing five or more drinks, a new study has found.
AdvertisementThe study is being called the first to try to measure the likelihood someone will drive after binge drinking. It suggests a need for stepped-up efforts to prevent bars and restaurants from serving people after they're intoxicated, according to its authors at the Centers for Disease Control and Prevention.
The researchers focused on 14,000 "binge drinkers " -- people who said that at least once month that they had five or more drinks on a single occasion. About 12 percent said they had gone driving within two hours of their last bout of heavy drinking.
Of those drivers, more than half took the wheel after drinking in a bar, restaurant or other licensed establishment. And half of the drivers who left an establishment said they had seven or more drinks; a quarter said they'd had at least 10.
Some people can handle alcohol better than others, and eating food or drinking over several hours can soften alcohol's impact. But clearly 10 drinks is a lot, said James Fell of the Pacific Institute for Research and Evaluation, a national research organization focused on alcohol policy.
"Almost everybody's going to be intoxicated after 10 drinks,'' said Fell, who was not involved in the study.
Binge drinking is a main factor behind the more than 11,000 deaths annually from alcohol-related motor vehicle crashes, said Dr. Timothy Naimi, an epidemiologist with the CDC's alcohol program. He led the study, which was released Tuesday and will be in the October issue of the American Journal of Preventive Medicine.
Nearly every state has a law that in theory prohibits licensed establishments from selling alcohol to drunk patrons. But most states don't have enough enforcement personnel to stop in on bars and watch for over-serving of customers.
"These are among the most disregarded laws in the country,'' Naimi said.
Without policing, there's little incentive for bars, clubs and restaurants to discourage drinking. Tips depend on keeping patrons happy and buying, noted Jim Mosher, a Washington, D.C.-based legal researcher and consultant on alcohol issues.
The American Beverage Institute, a restaurant trade association, had no immediate comment on the study. The organization's Web site promotes efforts to apprehend and penalize drunk drivers, but also notes voluntary server training and other efforts by restaurants to discourage drunk driving.
The CDC study was based on a telephone survey done in 2003 and 2004, and some things have changed since then. Drunk driving fatalities have decreased, dropping nearly 10 percent from 2007 to 2008, according to the National Highway Traffic Safety Administration. There have also been a variety of efforts to reduce drunk driving including court-mandated devices that prevent a car from starting if a driver is drunk.
But most efforts focus on punishing the driver and not preventing drunk driving by focusing on those who enable it.
"The drinking location is really important,'' said Naimi. "We're trusting these licensed establishments to serve responsibly, and more than half of the intoxicated people who drive have been drinking in these places.''
A follow-up survey in 2008 found the situation hadn't changed, he added. Those results haven't yet been released.
Study: 1 in 10 Binge Drinkers Gets Behind the Wheel
By Mike Stobbe
September 2, 2009
E-mail this Article Post Comment Print this Article Article Reprints
One in 10 binge drinkers got behind the wheel the last time they drank heavily. And half of those drivers left from a bar, restaurant or nightclub after downing five or more drinks, a new study has found.
AdvertisementThe study is being called the first to try to measure the likelihood someone will drive after binge drinking. It suggests a need for stepped-up efforts to prevent bars and restaurants from serving people after they're intoxicated, according to its authors at the Centers for Disease Control and Prevention.
The researchers focused on 14,000 "binge drinkers " -- people who said that at least once month that they had five or more drinks on a single occasion. About 12 percent said they had gone driving within two hours of their last bout of heavy drinking.
Of those drivers, more than half took the wheel after drinking in a bar, restaurant or other licensed establishment. And half of the drivers who left an establishment said they had seven or more drinks; a quarter said they'd had at least 10.
Some people can handle alcohol better than others, and eating food or drinking over several hours can soften alcohol's impact. But clearly 10 drinks is a lot, said James Fell of the Pacific Institute for Research and Evaluation, a national research organization focused on alcohol policy.
"Almost everybody's going to be intoxicated after 10 drinks,'' said Fell, who was not involved in the study.
Binge drinking is a main factor behind the more than 11,000 deaths annually from alcohol-related motor vehicle crashes, said Dr. Timothy Naimi, an epidemiologist with the CDC's alcohol program. He led the study, which was released Tuesday and will be in the October issue of the American Journal of Preventive Medicine.
Nearly every state has a law that in theory prohibits licensed establishments from selling alcohol to drunk patrons. But most states don't have enough enforcement personnel to stop in on bars and watch for over-serving of customers.
"These are among the most disregarded laws in the country,'' Naimi said.
Without policing, there's little incentive for bars, clubs and restaurants to discourage drinking. Tips depend on keeping patrons happy and buying, noted Jim Mosher, a Washington, D.C.-based legal researcher and consultant on alcohol issues.
The American Beverage Institute, a restaurant trade association, had no immediate comment on the study. The organization's Web site promotes efforts to apprehend and penalize drunk drivers, but also notes voluntary server training and other efforts by restaurants to discourage drunk driving.
The CDC study was based on a telephone survey done in 2003 and 2004, and some things have changed since then. Drunk driving fatalities have decreased, dropping nearly 10 percent from 2007 to 2008, according to the National Highway Traffic Safety Administration. There have also been a variety of efforts to reduce drunk driving including court-mandated devices that prevent a car from starting if a driver is drunk.
But most efforts focus on punishing the driver and not preventing drunk driving by focusing on those who enable it.
"The drinking location is really important,'' said Naimi. "We're trusting these licensed establishments to serve responsibly, and more than half of the intoxicated people who drive have been drinking in these places.''
A follow-up survey in 2008 found the situation hadn't changed, he added. Those results haven't yet been released.
Tuesday, September 1, 2009
Some Texas Windstorm Policyholders Must Buy Flood Coverage
Texas / South Central News
Some Texas Windstorm Policyholders Must Buy Flood Coverage
September 1, 2009
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Some property owners in Texas coastal counties that seek wind insurance coverage from the Texas Windstorm Insurance Association will be required to buy flood insurance equal to at least 90 percent of the property's value, or the maximum available from the National Flood Insurance Program (NFIP), under new Texas Department of Insurance rules, the Independent Insurance Agents of Texas (IIAT) reports.
The maximum coverage available for dwellings in NFIP is $250,000.
The new rules were developed in response to legislation passed in 2009; they apply only to property that is "constructed, altered, remodeled or enlarged" after Sept. 1, 2009. The requirements specifically do not apply to property being repaired, such as property rebuilt after Hurricanes Ike and Dolly.
The new rules apply to property owners seeking wind coverage from TWIA whose property is located in what is termed a "V" Zone, including NFIP rating zones V, VE and V1-V30. Properties so designated are usually close to the water and considered at high risk of flooding with possible damage by wave action (surge). Most independent insurance agents can advise property owners of their property flood hazard, or consumers can go online to www.floodsmart.gov to determine their flood zone.
The new requirements go into effect immediately, though TWIA may have to develop procedures to monitor the requirements.
As a result of legislation that overhauled TWIA's funding, consumers and their agents will now have to demonstrate that an insurance company writing business in coastal counties has declined to write or renew their windstorm insurance before they are eligible for insurance in TWIA.
Independent agents who represent multiple insurance companies should be able to obtain that declination for TWIA insureds renewing coverage this year.
Another new requirement affects the cancellation of insurance. If a TWIA property insured cancels coverage, or fails to pay premium due resulting in cancellation of coverage, the law requires TWIA to keep a portion of the premium equal to 180 days of coverage.
If this premium is not paid, the insured will not be eligible for future coverage in TWIA, until the debt is cleared. A lapse in coverage in TWIA could also result in a property owner having to obtain a building code compliance certificate in order to obtain insurance again.
Source: IIAT, www.iiat.org
Some Texas Windstorm Policyholders Must Buy Flood Coverage
September 1, 2009
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Some property owners in Texas coastal counties that seek wind insurance coverage from the Texas Windstorm Insurance Association will be required to buy flood insurance equal to at least 90 percent of the property's value, or the maximum available from the National Flood Insurance Program (NFIP), under new Texas Department of Insurance rules, the Independent Insurance Agents of Texas (IIAT) reports.
The maximum coverage available for dwellings in NFIP is $250,000.
The new rules were developed in response to legislation passed in 2009; they apply only to property that is "constructed, altered, remodeled or enlarged" after Sept. 1, 2009. The requirements specifically do not apply to property being repaired, such as property rebuilt after Hurricanes Ike and Dolly.
The new rules apply to property owners seeking wind coverage from TWIA whose property is located in what is termed a "V" Zone, including NFIP rating zones V, VE and V1-V30. Properties so designated are usually close to the water and considered at high risk of flooding with possible damage by wave action (surge). Most independent insurance agents can advise property owners of their property flood hazard, or consumers can go online to www.floodsmart.gov to determine their flood zone.
The new requirements go into effect immediately, though TWIA may have to develop procedures to monitor the requirements.
As a result of legislation that overhauled TWIA's funding, consumers and their agents will now have to demonstrate that an insurance company writing business in coastal counties has declined to write or renew their windstorm insurance before they are eligible for insurance in TWIA.
Independent agents who represent multiple insurance companies should be able to obtain that declination for TWIA insureds renewing coverage this year.
Another new requirement affects the cancellation of insurance. If a TWIA property insured cancels coverage, or fails to pay premium due resulting in cancellation of coverage, the law requires TWIA to keep a portion of the premium equal to 180 days of coverage.
If this premium is not paid, the insured will not be eligible for future coverage in TWIA, until the debt is cleared. A lapse in coverage in TWIA could also result in a property owner having to obtain a building code compliance certificate in order to obtain insurance again.
Source: IIAT, www.iiat.org
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