This past year, there is no doubt that catastrophes played a major role in the increase in E&O claims. After all, “nothing brings out an agent’s mistake as quick as a catastrophe”. In many of the E&O claims made as a result of these catastrophes, the issue of flood was front and center. In some cases, there was no flood coverage while in other E&O claims, the limits were not sufficient to cover the loss.
On December 5th on www.claimsjournal.com, the following article was published. As you will note, it includes some very interesting research by state.
“An estimated 23 percent of residential and commercial properties in the U.S. are at High or Moderate risk of flooding, based on CoreLogic proprietary flood analysis, but are outside of designated Special Flood Hazard Areas (SFHA) as identified by the Federal Emergency Management Agency (FEMA), according to new data analysis from CoreLogic.”