Insurance updates this year cover changes to the pricing of flood insurance from FEMA as well as some pandemic-related guidance on health and travel insurance. 

Insurance News

Flood

In areas that are prone to flooding, homeowners must buy their flood insurance from the government (FEMA), as private insurers will not cover floods in these areas. Historically, this has been highly subsidized.  At the end of last year, FEMA announced that rates would be adjusted to more accurately reflect flood risk, effective in April of 2022. The indication was that higher valued properties would see premiums increase by more than lower valued properties, and some rates might actually decline. This politically charged issue is still making news as Congress tries to get a handle on just how many people will now go without the insurance due to increased premiums. (Politico) (AP)

Liability

San Jose, California became the first place in the US to require that most gun owners living in the city carry liability insurance. This may not impact very many people, because most people have either a homeowners or renters insurance policy that includes some liability coverage. (CNN) (NPR)

Health

Big news in the last two years has been the health insurance surcharges some companies were charging their unvaccinated employees. For Example, Delta Airlines was charging an extra $200 per month. They announced in April that they were no longer going to do that. (CNBC)

People looking for a government health insurance plan must be careful. Many have spent lots of money on what they thought were ACA plans but they what they bought wasn’t even insurance! (They were “share” plans.) Your best bet is to go directly to healthcare.gov, rather than one of the lead-generating websites that is likely to send you somewhere you don’t want to be. (NPR)

When you leave a job that provides health insurance, what should you do? As record numbers of people were quitting work during the pandemic for a wide variety of reasons, many didn’t realize the extent to which their employers were subsidizing the cost of health insurance. This is something you should probably understand BEFORE handing in that resignation letter! Employers with over 20 employees must offer you an 18-month extension of health insurance coverage under COBRA (Consolidated Omnibus Reconciliation Act), but this coverage in all likelihood will no longer be subsidized. If there is a gap in coverage between jobs, or until one is eligible at a new job, COBRA may be the easiest thing to do for a short period of time. The costs must be disclosed to you upon resignation, and there is an enrollment window. If you are lucky, that window to sign up may be long enough to get you through to the point you are covered in your new job and you can wait it out, only paying for it if you end up needing it. If you lose employer-based health care, you can also sign up for something through healthcare.gov—you won’t have to wait for open enrollment. (CNN)

Insurance Resources Published Recently

Car

Car insurance is probably the one type of insurance teens need to understand first, as most will be learning to drive in high school. There are so many components to car insurance, and they vary state to state (at-fault or no-fault). If you are looking for a quick guide as a primary or secondary resource, here are two that have been published recently. One from Chase Bank, and one from Forbes.

Travel

In times of pandemics, travel insurance has become a much more important consideration when planning any trip. It is so confusing, between what airlines offer, what you might have through one of your credit cards, and so on. Again, Forbes has a good guide on what you need to know about travel insurance. See also CNBCTV18.

Business Insider looks at annual travel policies for frequent travelers. And the Points Guy discusses what the travel insurance included with some credit cards might cover, and what it won’t. (This article contains links to advertised products, but there is still good information in it.)

Homeowners

Both Forbes and Fox Business discuss homeowner’s insurance and how to buy it. Personal Property, part of or purchased in conjunction with a homeowner’s policy, is explained by USNews.

Condo

Insurance for a condo or co-op works very much like homeowners policies work. The difference is that you will need to understand what the condo/co-op master policy (paid for through your HOA) covers, and what you will need to make sure you have included in your individual policy. (USNews)

History of Health Insurance

Accident insurance was first offered in the 1850's to folks traveling by train or steamboat.  Disability insurance from illness appeared after the turn of the century, but the birth of health insurance more like what we have today occurred in the 1920s.   If you are someone who is trying to figure out how we got to where we are today with health care insurance, this history of health insurance might make an interesting read. (Mendovoice.com)

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.