When Disaster Strikes

1. When Disaster Strikes

2. By: Kyle Willner The Question of : Federal Disaster Insurance

3. What Is It ? • Assistance From Federal Government to residents afflicted by a Natural Disaster • Goal: help compensate for losses due to the Natural Disaster • i.e. Floods, Earthquakes, Forrest Fires, Landslides, Tornados, Hurricanes…etc • Floods are the most common, and most costly, natural disaster. • Relief Comes In many different forms depending on the country and magnitude of the disaster

4. In The USA... • Before most forms of federal disaster assistance can be offered, the President must declare a major disaster • Most common form = Loan : must be paid back with interest • Average federal Individuals and Households Program award is around = $4,000 • Average duration of a U.S. Small Business Administration (SBA) disaster home loan = 30 years. • The recipient of a $50,000 SBA residential disaster loan must pay back about $240 a month at 4% interest

6. US Feds Promote • Private Disaster Insurance • Flood insurance claims are paid even if a disaster is not declared by the President • Homeowners, business owners, and renters can all purchase flood insurance • Homeowners MAX = $250,000 coverage • Business owners Max = $500,000 coverage • Feds say, “Easier to recover quickly” (FEMA.gov) • Feds want citizens to be responsible and prudent for private disaster coverage

7. California

8. Balboa Boulevard, LA, California, 1994 Northridge earthquake California Wildfire Interesting State • CA has a High Frequency of Natural Disasters • Only about 13% of Californians have earthquake insurance • Proposal by State Insurance commissioner John Garamendi • Says, “Cost of rebuilding after natural disasters is making insurance more costly and less available for many Californians” • Advocates-creation of National Disaster Insurance Policy to cover all natural disasters in the US. spread risk across a much larger pool of potential disasters, making it more affordable and cost effective • “California’s propensity for disasters means that we all are at a high risk to lose our homes and other important possessions”

9. Quick Stats • Area: 268,021 sq km (about the size of Colorado) • Population: 4,035,461 (July 2005 est.) • Government: parliamentary democracy (similar to England) • Independence: September 26, 1907 (From England) • Legal System: based on English law • (stats courtesy of: CIA World Factbook, 2005 online) • The Point -> • 1.New Zealand politically acts fairly Socialist (similar to UK) • 2. In terms of size and population NZ is very Small New Zealand

10. Natural Disasters ? Yes! New Zealand Has a Huge Amount of Natural Disasters Including…earthquake, natural landslip, volcanic eruption, hydrothermal activity • They Also have excellent Federal Disaster Insurance • Earthquake Commission (EQC)- primary provider of natural disaster insurance to residential property owners----covers all the above disasters • EQC was established by the Government in 1945 • Currently about $4.5 billion in the EQC Fund • Government Guarantee ensures EQC will meet its obligations, regardless of circumstances • Info courtesy of -> http://www.eqc.govt.nz/home.aspx

11. In Closing... The type, quality, and quantity of Federal Disaster Insurance Depends On... • Frequency of Natural Disasters • Government Perspective- Socialism vs. Capitalism • Amount of taxes citizens of the country pay • Size in terms of population of the country THANKS 4 Listening !!!

12. New Zealand Taxes Tax rate table: http://www.whatstax.govt.nz/why-pay-tax/how-much/