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One Company’s Solution to Repetitive Loss Claims

Nationwide, 11,000 repetitive loss properties dot coastal zones or other low-lying areas with their numbers continuingly increasing. This rise is in part because of the effects of climate change and ongoing development. What exactly is a repetitive loss? A Repetitive Loss (RL) property is any insurable building for which the National Flood Insurance Program (NFIP) paid two or more claims of more than $1,000 within any rolling ten-year period (FEMA, 2013).

The states with the most severe repetitive losses are Louisiana and New Jersey .The NFIP, which must be reauthorized by the end of September, is nearly at $25 billion. The worst flooding, and often the most frequent, has occurred along the Gulf Coast of Louisiana and Texas. Houses along the Mississippi River recurrently have been affected and the Atlantic coast from Miami to Boston faces perpetual and also escalating threats.

The financial afflictions began when Hurricane Katrina devastated the Gulf Coast in 2005, followed by hurricanes Rita and Wilma. The program paid eight times as many claims that year as in any previous year and ended up borrowing $17.5 billion from the U.S. treasury.

Hurricane Sandy in 2012 resulted in 144,000 more in claims and another $6.25 billion in debt. Catastrophic events, floods in Louisiana, Texas, and other states, resulted in the third-largest year of payouts in the program’s history. A $90,000 property near the Mississippi River flooded 34 times, besetting up claims of more than $608,000.  With the amount of loss payouts, FEMA is tasked with pursuing competitive programmatic goals, while keeping flood insurance affordable and the program fiscally solvent.

Flood Risk America is a proactive flood mitigation company that is devoted to improving the amount of repetitive losses, while decreasing the amount of flood insurance deductibles and premiums. They are made up of a team of flood professionals who strive to help clients avoid flood losses while focusing on exposure, uninsured losses, and liability. Their mission is to eliminate the risk of flooding by using carefully selected, innovative, and proven flood risk management tools and solutions.  Along with their prevention measures, Flood Risk America is proud to announce the advancement of the their accredited Flood Mitigation Training program, which provides education on how to prevent, mitigate, prepare, and recover from an emergency flooding situation.

To learn more about how Flood Risk America can prepare your property and educate you on flood mitigation assistance, visit www.floodriskamerica.com or contact Stephen Gill at sgill@floodriskamerica.com