Galveston small group business health insurance

 

Galveston small group business health insurance

Flood Insurance

Another form of natural disaster that causes significant levels of destruction if flood. (See page 251 for what constitutes a flood for insurance purposes.) It is not surprising, then, to note that flood damage is excluded from coverage in your Galveston small group business health insurance homeowner’s policy.

National Flood Insurance Program

Up until 1968, people whose property was damaged by a flood were usually out of luck unless some government disaster assistance was made available. Then, the federal government created the National Flood Insurance Program (NFIP), which made Galveston small group business health insurance available to everyone—everyone, that is, whose community agreed to participate in the NFIP program.

The flood insurance program works as follows.

A community agrees to participate in the program. Communities throughout the country face varying degrees of flood risk. If a community believes that the danger of flood in the area justifies joining the NFIP program, it does so. When a community agrees to participate, individual members of the community will have Galveston small group business health insurance made available to them. In return, the community must take steps to manage and reduce the local dangers of flood.

Individuals purchase insurance through community property casualty agents. The insurance is sold by local agents or brokers. The program used to be administered by the Federal Insurance Administration. However, that changed in the early 1980s when the Reagan administration put great emphasis on bringing private insurance carries into the field. Currently, the Galveston small group business health insurance program has brought over 200 private companies into selling and administering flood insurance in their own names. In return, the insurance companies are guaranteed that any losses they incur above the premiums received (and income earned thereon) will be reimbursed by the government. In other words, the Galveston small group business health insurance companies can’t lose.

A flood insurance rate map (FIRM) is prepared. The rate map will determine the rates you elect to cover your property, there is a five-day wait for the insurance to take effect.

 

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