U.S. Federal Emergency Management Agency expects property insurance costs to rise
The Federal Emergency Management Agency (FEMA) is working on new flood maps that are expected to change the landscape for property owners. FEMA is currently focusing on individual properties, and as a result, property insurance costs are expected to rise.
- The nonprofit flood risk research group says there are 4 million homes threatened by flooding in the U.S., many of them on the Gulf Coast.
- FEMA is expected to provide information that may upset property owners a bit. The expected April release of these maps may be delayed until this summer because of the pandemic.
- Local Realtors rely on the updated flood maps to buy and sell homes.
- The updated maps will clarify which properties are likely to have flood problems, which means insurance rates will go up.
- In addition to the new flood maps, uncertainty remains about how much insurance claims for Hurricanes Sully and Zeta will raise homeowners insurance rates
U.S. President Donald Trump signed an executive order that restricts entry into the country for immigrants without health insurance or funds to cover medical expenses.
Aliens have 30 days after entering the U.S. to provide health insurance or proof of ability to pay.
The new rules take effect Nov. 3. They apply to aliens applying to immigrate to the United States from abroad, but not to those already in the country.
Exceptions are also made for U.S. visa holders, children of U.S. citizens, minors traveling unaccompanied, U.S. residency permit holders who have spent more than a year outside the United States, and citizens of Afghanistan and Iraq who have assisted the U.S. government.
At the same time, Trump’s executive order applies to spouses and parents of U.S. citizens. This will make it more difficult for those families trying to take their parents or spouses to the United States, DW notes.
Trump’s executive order, published on the White House website, says the new measure is designed to protect American taxpayers.
The costs associated with treating immigrants without insurance and funds are shifted to Americans in the form of higher taxes, insurance premiums, and medical fees, the U.S. president noted
U.S. prepared to make billions from marijuana insurance
Insurance companies in the U.S., amid the prospect of marijuana legalization, have braced themselves for increased sales to marijuana growers, Reuters writes.
The National Cannabis Risk Management Association estimates that insurers intend to make more than three billion dollars over the next five years — if the industry operates on the same terms as any other business.
For now, insurance companies can only offer their services in states where the drug is legal, but the market should become larger if changes are made at the federal legislative level. Last year, legal marijuana sales in the U.S. grew 45 percent; the sector is now valued at $17.6 billion. The industry should reach $41 billion in turnover by 2026, according to research firm BDSA.
That said, last year only $250 million worth of policies were written, with a small number of organizations offering property and liability insurance. But producing companies need insurance to also cover crops and protect them from theft.
Limits should be higher, too, according to industry representatives and experts interviewed by Reuters.
Cannabis is becoming legal in more and more U.S. states, and lawmakers in the U.S. are facing mounting pressure and calls to follow suit.
In April, the House of Representatives passed a bill that would allow banks to provide services to marijuana businesses in states where it is legal.
According to experts, some form of federal cannabis legalization can be expected in 2022.