For Immediate Release
Contact: Gay O’Brien
561/616-8443, ext. 119
gobrien@floodzonecorrection.com
Flood Zone Correction, Inc. Says Quarterly NFIP Stats Are Cause For Reform
Latest policy, premium and loss statistics reveal why the program’s in trouble!
(December 13, 2006 – West Palm Beach, FL) - Flood Zone Correction, Inc. (FZC), the nation’s first flood zone correction company, finds troubling indicators in the latest National Flood Insurance Program (NFIP) statistics provided by FEMA and calls upon the incoming members of the 110th Congress to make flood insurance reform a priority.
While the report for the period ending September 30, 2006, reveals an increase in the number of federally-backed flood insurance policies and premium revenue, thousands of low flood risk policyholders continue to foot the bill for high-risk policyholders. Policyholders in the states of Florida, Georgia, Michigan, Illinois, Nebraska, Maine, and Idaho continue to contribute more in annual premium payments than they receive in average annual claim payments. Policyholders in the states of Alabama, Kentucky, Louisiana, Mississippi and “Dummy- Unknown” receive more in average claim payments than they pay in annual premiums.
“Low flood risk policy holders cannot be expected to carry the load of high flood risk policyholders, nor will they be the key to bailing out the NFIP,” states Dan Freudenthal, president of Flood Zone Correction, Inc. He continues, “We need a program that’s fair to all policyholders in all flood risk categories. If the program’s to survive, it must stop subsidizing premiums of high-risk policyholders. Those who are truly at high risk for flooding and file the vast majority of claims must pay full actuarial premiums.”
Flood Zone Correction, Inc. further recommends that reform measures include raising the standards of flood zone determination procedures, including updating all flood maps; designating areas protected by flood control systems (e.g. levees, dams.) as high-risk; providing a metric for analyzing flood risk and eliminating the red tape that discourages property owners from pursuing the correction of their erroneous flood zone designations.
Flood Zone Correction, Inc., headquartered in West Palm Beach, FL, is an advocate for accuracy in the evaluation of flood risk and fairness in the imposition of flood insurance requirements. FZC clients own and/or operate well over two million multifamily units and over one thousand shopping malls, retail plazas, office buildings and industrial properties, as well as single family homes, town homes and condominiums. For more information, including a free flood risk analysis, visit www.floodzonecorrection.com or call toll-free: 1-877-Flood Zone.
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