Flood, previously thought to be an uninsurable risk, is now believed to be insurable by some private insurance companies. These companies, “equipped with the latest inland flood modeling tools”, are ready to challenge the status quo. “For most of the last 40 years, flood risk in the U.S. has fallen within the scope of the Federal Emergency Management Agency (FEMA), which oversees the development of flood risk maps across the country. These maps, which cover more than 98 percent of the U.S. population, are used for disaster preparedness, zoning practices and flood insurance rates.”
Read the entire article here. It provides additional details and background information without becoming too cumbersome.
With approximately 85% percent of Homeowners without any Flood Insurance coverage there is a big opportunity. However, with this opportunity come enormous risks. Are the modeling tools accurate enough to allow some of these private insurers to make it? I’m glad we’ll get to find out.