Posted: Jun 11, 2010 5:49 PM by Veronica White
Updated: Jun 11, 2010 5:48 PM
In a state where hurricanes-and therefore flooding-are a big worry, homeowners need insurance.
State Farm, Louisiana's largest property insurer, says the federal government is not helping out the way it should.
It is changing its arrangement with the National Flood Insurance Program.
Agents will continue to sell and service policies, but according to spokesperson Phil Supple, now they are focusing on their own products.
"More resources on core products and core businesses that serve our customers," says Supple.
This is a result of Congress and what State Farm calls their lack of action. In May Congress adjourned without authorizing funding for the National Flood Insurance Program, leaving private insurance companies unable to update and renew their policies.
"That causes tremendous complications for a company our size who needs to notify those who have flood policies," says Supple.
This lack of authorization has happened 11 times in the last 8 years, leaving soon-to-be homeowners in a bind because without flood insurance a buyer cannot get a home in a flood zone.
"We caution people at this time of year, especially if there's a hurricane in the Gulf, that they have their policy started," says Mortgage Lender Barbara Bordelon.
The only change for current state farm customers, according to Phil Supple, is if they have a claim, it would be handled by federal government adjusters.