As we wait for cooler weather to arrive, we usually start to rethink our educational objectives. It is time to get back into the study and learning mode. There is a big need to keep ourselves updated about insurance topics. We also need to recruit others into the CPCU Society. Our industry deserves to be staffed by knowledgeable and ethical people.
One area that is not too controversial in Michigan is flood insurance. We do not see the impact of hurricanes on our waterfront properties but we did see a lot of flooding in the spring rains that impacted many of us in Michigan.
We are starting to hear “horror stories” about drastic increases in flood insurance premiums. How prepared are you, as an insurance professional, to respond to these stories and questions? A recent article in Property Casualty 360 described an increase in premium from $1700 to $15,000 over the next few years. There is a transition period to get the higher premiums. But if the house is sold prior to the transition period, the new owner would immediately be charged, in this case, the $15,000 premium.
I know people who are now going to “go bare” for flood insurance due to the high premiums. Most of the non-insurance public thinks our industry is responsible for the increase in premiums. We need to let them know that the Federal Government is the agency setting the rates and why they need to increase.
I encourage all of us to learn more about Biggert-Waters Flood Insurance Reform Act of July 2012.
Our October 15th meeting will feature Greg and Diane Wehby, talking about Leader Dogs for the Blind, our featured charity for this year. Let’s have a good turnout for this informative presentation and Greg will have Riley, his Leader Dog, with him.
Our November 19th meeting will be our Conferment Ceremony for our new CPCU’s and also our annual FOOD DONATION DRIVE so please bring a food donation with you. Installation of our 2014 Officers will also be on our agenda.
Enjoy the fall colors in our forests.
Don Viewig, CPCU, CLU, CPIA