Hurricane Sandy: Safe Rebuilding, Safe Insurance, Safe USA?

posted by Ida B. Wells IV @ 12:52 PM
November 19, 2012

    As Sarah Newsworthy is simply overwhelmed with various aspects of Hurricane Sandy affecting so many Americans in its aftermath, she asked me to deal with insurance ramifications for home owner and for states.  But she has done me no favors:  This too is proving to be a confusing and heavily-burdened task!

First, most home owners insurance coverage does not include damage from flooding, but if damage was caused by a different failure that allowed flooding, there may possibly be coverage.

Second, a storm’s ‘name’ when it hits your state can determine your coverage and liability. Bob Hunter, head of  insurance for Consumer Federation of America says:“ If you are in New Jersey, for example, and the storm hits as a hurricane on the coast, but downgrades to a tropical storm by the time it hits your house, the higher hurricane deductible may still apply to your claim.”

Third, in the recent decades of destructions from Global Warming, insurance companies may opt out of paying anything at all.  According to Reuters: “. . . many insurers have “anti-concurrent causation clauses” in policies now that say if you have damage from multiple causes, say wind and flooding, where wind is covered but flooding is not––they won’t cover anything at all.”

Fourth, even if you have the federal government’s flood insurance, you may still have a struggle collecting, because that program is going broke, and Congress is not anxious to re-fund it. So says writers Eric Lipton, Felicity Barringer and Mary Williams in ‘Flood Insurance, Already Fragile, Faces New Stress:’

“The federal government’s flood insurance program, which fell $18 billion into debt after Hurricane Katrina, is once again at risk of running out of money as the daunting reconstruction from Hurricane Sandy gets under way.

“Early estimates suggest that Hurricane Sandy will rank as the nation’s second-worst storm for claims paid out by the National Flood Insurance Program. With 115,000 new claims submitted and thousands more being filed each day, the cost could reach $7 billion at a time when the program is allowed, by law, to add only an additional $3 billion to its onerous debt.”

These reporters explain that homeowners on the national flood insurance program would have to an exorbitant amount in monthly premiums to accurately reflect market insurance rates.   As it is those with federally-backed mortgages in areas at high risk for flooding can pay up to $ 3,000 a year for flood insurance.

Number umpteenth:  In these end-time days, remember that old adage about insurance companies:  They give great coverage until you need it!  In contrast, God’s insurance is never-fail and it’s free.

Hebrews 7: 22 in used Christian Bibles says:  “By so much was Jesus made a surety of a better testament.”  That word ‘surety’ is the insurance in God’s Word filled His promises of love, grace, and mercy to all who accept His Son.

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