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The Washington Flood Market Assistance Plan

 

The Market Assistance Plan

At the request of Commissioner Mike Kreidler, the Legislature and Gov. Chris Gregoire approved additional authority for our office to take steps to help ensure that businesses in Washington's Green River Valley can find excess flood and business interruption coverage. The bill, HB 2560, was signed into law March 29, 2010 by by Gov. Gregoire.

More than two dozen insurance companies have stepped forward so far to form the Washington Flood Market Assistance Plan. This voluntary program serves as a matchmaker, pairing businesses needing coverage with insurers willing to sell it.

The Surplus Line Association of Washington, an industry association, has agreed to act as administrator of the program. The WFMAP is structured so that all applications must come through an insurance agent or broker. If you are seeking coverage and do not have an agent or broker, the WFMAP website includes links to associations who can refer you to one.

As part of its role, the WFMAP will also collect critical data on the scope of business insurance availability in the area. The Office of the Insurance Commissioner will oversee the program.

We have also created a list -- which we'll update frequently -- of frequently asked questions about the Market Assistance Plan.

Among the topics covered:

• Is participation mandatory for insurers?
• How will the program work?
• Who can apply?
• and who to contact with more questions.

Background on the Green River Valley situation:

A weakened abutment to the Howard Hanson Dam, in south King County, means that the U.S. Army Corps of Engineers may have to release more water than usual to avoid stressing the dam.

Work to strengthen the dam in the fall of 2009 sharply reduced the chance of serious flooding, according to the Corps, to about 1 in 33. Additional work is ongoing.

Our office recommends that property owners in the Green River Valley area consider federal flood insurance if it is available. (The program lapses periodically, pending Congressional reauthorization.)

For many businesses, however, federal flood coverage may not be enough. It's capped at $500,000 for a building and $500,000 for contents, for example, and does not include business-interruption coverage. Some businesses have reported major problems finding coverage. Those concerns led to the legislation that has resulted in the WFMAP.

 

Updated 11/28/2011