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CSFI Provides Tips to Policyholders, Media Outlets in Response to Hurricane Idalia

In the wake of Hurricane Idalia’s landfall in Florida, CSFI has been engaged by national media to discuss the importance of flood insurance and share information on the claims process.  GNO, Inc. President & CEO Michael Hecht spoke to NBC News Now and FOX Weather, highlight NFIP coverage as a tool to reduce risk exposure and financially recover from storms.

On FOX Weather, Hecht encouraged all residents of hurricane-prone areas to purchase flood insurance, inventory belongings, and develop a hurricane preparedness plan in advance of events.  Hecht noted the discrepancy between NFIP coverage – providing a payout of up to $250,000 for buildings and $100,000 for contents – and FEMA’s Individual Assistance Program, which will only pay $41,000.   The NFIP-RE Act of 2023proposes to increase NFIP coverage limits to a baseline amount, equal to the maximum original principal obligation of a conventional mortgages.

On NBC News Now, Hecht discussed a ten-state lawsuit against FEMA, which argues that Risk Rating 2.0 is arbitrary and capricious and it is in violation of the Administrative Procedure Act.  For Idalia-affected individuals, Hecht advised that individuals document damage and keep receipts in case they can claim reimbursement.

Moody’s RMS has estimated that private market insured losses from Idalia will land at around $3.5B.  Furthermore, Moody’s RMS estimates around US$500 million in losses to the NFIP, primarily in Florida.

Moreover, Reuters has reported on the need to reauthorize NFIP, with its forthcoming September deadline.  Reporter Ben Winck advocated for long-term investments in the program and flood mitigation.  He stated that, “increasingly frequent weather disasters and a policyholder exodus will only grow the NFIP’s debt. Lawmakers shouldn’t take a rain check on updating the government’s flood protection.”