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What does this mean? (flood insurance policy related)


OneStepAtATime
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"loss of or reduction in available insurance capacity"

 

I will be calling my insurance company but basically it appears that at the end of January our flood insurance will not be renewed and I am confused as to why.  We pay our premiums.  The above is the only explanation given.  They say we have to contact them to find other ways to handle flood insurance coverage.  What does "loss of or reduction in available insurance capacity" mean?

Edited by OneStepAtATime
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We got a similar letter (SoCal).  I'm thinking it has to do with the hurricanes and flooding, insurance companies taking a hit.  We will renew, because although unlikely it would happen here, my mom's house flooded due to freak rainstorm (too much water too fast for drains).  Insurance claims were denied because it was considered a "flood."  

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My understanding is that the only Seller of Flood Insurance in the USA is the U.S. Government.  Have you been buying it from them, via your Homeowners Insurance Company?  It may be that the "reinsurance" your Homeowners Insurance Company purchases to cover them, in case of enormous catastrophic claims, is no longer available to them.  I suggest that you contact your Homeowners Insurance company (or your Agent) on Tuesday, since Monday is a Federal Holiday.  

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We got a similar letter (SoCal).  I'm thinking it has to do with the hurricanes and flooding, insurance companies taking a hit.  We will renew, because although unlikely it would happen here, my mom's house flooded due to freak rainstorm (too much water too fast for drains).  Insurance claims were denied because it was considered a "flood."  

Ah, that makes sense.  They don't have the money to cover more losses right now so they are dropping the flood policy.  O.k.

 

As for renewing, that's the thing, we CAN'T renew.  They won't let us renew.  I feel strongly that we need flood insurance because we are living in an area that has Hurricanes but they informed us that they will not be allowing renewal of the policy.  Guess I will be tackling that on January 2nd.

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Ah, that makes sense.  They don't have the money to cover more losses right now so they are dropping the flood policy.  O.k.

 

As for renewing, that's the thing, we CAN'T renew.  They won't let us renew.  I feel strongly that we need flood insurance because we are living in an area that has Hurricanes but they informed us that they will not be allowing renewal of the policy.  Guess I will be tackling that on January 2nd.

 

 

Well, that sucks - I would expect that IF you can find some other way to get flood insurance, that it will cost a LOT more.

Edited by luuknam
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