Harvey’s impact on flood insurance


OF DOLLARS AND THAT COULD HAVE A RIPPLE EFFECT HERE IN OUR AREA. SCOTT IS JOINING US LIVE ALONG THE RIVER WITH DETAILS ON HOW THIS DISASTER MAY AFFECT FEDERAL FLOOD INSURANCE. SCOTT?>>Reporter: WELL, TOM THE NATIONAL FLOOD INSURANCE PROGRAM IS BILLIONS OF DOLLARS IN DEBT UP FOR RENEWAL IN THE NEXT MONTH OR SO. BUT THE PROBLEM IS IT IS DEALING WITH THAT DEBT FROM 10 YEARS AGO IN STORMS LIKE HURRICANE KATRINA AND THE MASSIVE AMOUNT OF CLAIMS THAT CAME THROUGH THEN. NOW WITH ALL THE RAIN THAT HAS BEEN POURED BY HARVEY, IT’S KIND OF CURIOUS ON WHAT WILL HAPPEN TO THE NATION’S LARGEST INSURER THE FEDERAL GOVERNMENT. DEVASTATION SO WIDE SPREAD DIFFICULT TO FATHOM FOR MOST.>>OH, YES. I FEEL FOR THEM. I LOOK AT THEM AND GO I KNOW HOW YOU FEEL.>>Reporter: NOT CARROLL WHO HAS LIVED ALONG BLACK CREEK NOTORIOUS FLOOD ZONE FOR YEARS.>>WHEN WE HAD DANIEL DOWNSTAIRS WE HAD 48,000 DOLLARS WORTH OF DAMAGE. DOWNSTAIRS. AND THE BUILDING.>>Reporter: THIS IS THE 5 YEARS AGO.>>YES.>>Reporter: SO SHE’S ONE OF FEW WHO CHANGED TO PRIVATE INSURER WITH MORE REASON RATES.>>SO LLOYD OF LON TON I HAVE IT THROUGH AND IT’S 1400 DOLLARS A YEAR.>>Reporter: STILL A PRETTY PENNY.>>STILL A PRETTY PENNY WHEN YOU ARE RETIRED AND ON A FIXED INCOME, YES.>>Reporter: HER QUESTION NOW IS WHET THE FLOOD INSURANCE INDUSTRY WHICH IS ONLY REQUIRED FOR HOMES IN FLOOD PLAINS WILL CHANGE AGAIN.>>FOR DECADE THERE WAS ONLY ONE GAME IN TOWN THAT WAS THE NATIONAL FLOOD INSURANCE PROGRAM. NOW WE HAVE.>>Reporter: PRIVATE COMPANY HAVE CHANGED THINGS.>>ITEM HELPED SOME.>>Reporter: JOHN YOUNG OWNS THIS INSURANCE IN ORANGE PARK. HE SAYS THERE WILL LIKELY BE CHANGES COMING TO FEDERAL FLOOD INSURANCE AND YOU WILL NEED TO BE IN TOUCH WITH YOUR AGENT BUT ITEM DIFFICULT TO PREDICT BECAUSE THIS IS ONE OF THE MOST COMPLEX CONSTANTLY CHANGING AREA IN THE INDUSTRY. BOTTOM LINE IS IT’S TOO SOON TO KNOW WHET YOUR INSURANCE RATES WILL GO UP.>>I SEE CHANGE TO T PROGRAM WHERE THEY LOOK AT THE IMPACT OF THE LAST MAJOR EVENT AND THEN THEY RETOOL TH PROGRAM.>>Reporter: ONE OF THE BIG ISSUES IN TEXAS IS A LIEUTENANT OF THE HOMES THAT FLOODED HUNDREDS OF THOUSANDS WERE HIS NOT IN FLOOD PLAINS MEANING THEY ARE NOT REQUIRED TO HAVE FLOOD INSURANCE AND IT’S NOT COVERED UNDER YOUR HOMEOWNER POLICY SO UNCERTAIN RIGHT NOW WHAT WILL HAPPEN IF THEY HAVE CLAIMS.

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