FLOOD INSURANCE INDUSTRY UPDATE

A flood can be a devastating natural disaster. These events cause approximately $1 Billion worth of damage every year in the Western United States alone. Fortunately, an industry-wide realization is on the way, and many insurance companies are increasing their flood protection offerings in states such as California. Due to this change, you may no longer have to go to third party companies for your flood insurance coverage.

Estimates made by the University of California San Diego show that floods have caused over $51 billion in damages to the Western United States in the last 40 years. These floods are the result of a natural phenomenon called an “Atmospheric River”, which consist of moisture from the equator travelling like a corridor through the atmosphere to other parts of the globe.

Major insurance carriers in California are beginning to offer flood-related services. These services are also offered in other US States, such as Florida, New Jersey, and Virginia, and will be expanded to more than 10 other states. This move is a big step forward for the insurance industry, and it shows that the industry recognizes the needs of clients and is moving rapidly to adapt to new climate situations.

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