You're watching...
Property Casualty Insurers Association CEO David Sampson weighs in on insurance and possible damage from Hurricane Isaac.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- -- -- things start off as well as becoming clear that the threat from slow moving hurricane -- may not come.
From the winds but the possible flooding no one knows this better than our next guest David -- as CEO and president.
Of the property casualty insurers association of America we are still happy.
To have you with us here -- to tell -- and and break this down because.
Flooding and wind insurance are two different kinds of insurance and we see that -- -- 78.
And that's means a lot of great lot flooding what do you think.
-- well it sure does and -- one of the things that we try to convey at the beginning of the hurricane season to all of the policyholders out there is the point that you just made.
That now homeowners coverage the normal homeowners policy does not cover flooding that is a separate policy that has to be purchased.
And very good news is that that congress just.
Reauthorize the National Flood Insurance Program.
For five years but of course that doesn't do folks very much good in less they've actually purchase the coverage and it -- -- The major losses this time are going to be from the over topping of the the dikes and and the flooding from the rain.
-- a couple of quick thoughts number one -- where do you think this possibly could rank in our history.
Above data major insurance based on -- the rain that you're expecting -- what you're hearing so far.
Is it hard to gauge at this point -- -- Canadian.
-- -- -- well it's still too early to gauge I mean the storm is still.
Raging.
It's gonna take a little bit of time before.
Claims adjusters can get in there and -- and -- began looking at that.
I think that we know that there's about 480 billion dollars of insured property in the area where it's going to hit landfall hundred -- And billion dollars of property that's a lot.
I wanna pull I don't have much time reviewing your fantastic guess I wanted to ask you about the flood insurance that -- -- talking about that people can get there's two thoughts that I had number one you can get that.
The flood insurance and -- and how much is it and it's very costly from what I understand a number to give up.
A mortgage on the home how does that play -- -- a lot of people are going to be paying out of their pocket basically right.
Well it yes if you have a federally backed mortgage which is the vast majority of mortgages -- out there today.
You are required by law to have flood coverage for that home if you have a federally insured mortgage and so.
It is something that is required by law.
And you know the cost is not nearly as significant as the cost of being uninsured and then having to pick up all of that out of pocket cost.
When your -- home floods.
All right well we thank you so much David -- CEO and president of property casualty insurers association.
Of America we appreciate your insight and of course -- not following the storm very closely with all that rain.
