Insurance and Flooding

In the wake of the devastation in the Midwest due to flooding, we thought we would take a look at the percentage of homeowners who are insured for an incident like this, and what those uninsured can do. Unfortunately, given all of the natural disasters this year --whether they be wildfires, hurricanes, tornadoes or flooding -- it's going to be a difficult year for homeowners and most likely insurers.  

Insurers. If you don't know them or haven't traded them, they can be confusing. Often, they rally aggressively during a catastrophe because of the belief that with increased claims they can raise their premiums. This economy is different, though. Many have financial investments on their books, subprime-related, that have hurt them.  Many have to look for or guarantee that they have purchased enough reinsurance and many of them are at risk if the government doesn't step in to help the victims.  

I interviewed Sandy praeger, president of the National Association of Insurance Commisioners and Charles Payne in part one of my interview. We discussed the risks to homeowners and the changes in the industry that will likely happen as a result of all of these catastrophic events. In part two, I interviewed Lisa Cochrane, vice president of marketing at Allstate about how they reach out to their customers, arrive on the scene and use opportunities like this to redeliver their message and commitment to helping the consumer. Remember, "You're in good hands with Allstate." Take a look.