Request for Advice: Flood Insurance

[Sandpointian]

Originally Posted by DESERTRYDER

back at our old house in central cal we were handed the flood insurance BS. 1200 a year.
I had a surveyor come to the house and do his surveying magic.
I submitted his findings to the National flood insurance people and they reduced my bill to just under 400 bucks a year.
We were ok with that for 10 years we paid.
Then through the magic of goverment after taking our money for 10 years they told us " Map change " and now your not in the flood zone..
I wrote them and asked for my money back that I had paid for the last 10 years. The lady laughed and said they spent it on the East coast.

When I was younger I would have been simply outraged, now I somehow could anticipate your story. I do not know what is more amazing, the financial hijinks or the fact that my image of America is deviating more and more away from the direction of power and "leadership" in this country.

Too bad there was no camera with you when the lady spoke. You have earned 1 million + hits on youtube and resulted in a cheque being cut!

I brought in a surveyor too. Apparently he fell 3.6 inches short.

S.
P.S> Time to grin down and bear it! Nothing else to do...

[Sandpointian]

Originally Posted by shades_of_idaho

Sandpointian. DR has a good plan there to have your elevations shot. We are only a few feet above, out of, the flood plain as you say inches matter in this case.

The other alternative is to pay off your house and save 1500 a year. Then you have the option to carry flood insurance or not. When we sold the house we had that flooded we packed the paper on it for the people that bought it. In a high water year he would buy the FI 90 days before runoff. I think it used to be 30 days. Anyway maybe you can find some one to carry your paper on the house and save yourself some money. Make them a little higher interest than the bank pays.

Neighbor here is financing a house in flood plain and I believe he said it was about 400 to have his house shot for elevation.

AND your complaint is so valid on how they can make it mandatory to carry the FI. As I understand it it will be unlikely to get much help from FEMA should there be a flood even carrying insurance. More of I am from the government I am here to help you kind of thing.

Primary election tomorrow big day at city hall today. Phone guy accidentally broke down a full bookshelf , moving it, and my office got trashed. Got a start on it Saturday. County in to set up for election. I might never get done today.
Chris

Hi Shades,
I thought we had a crack at it based on preliminary shooting. Had I not been pressured by our lender (I had planned to get elevations for other reasons), I would have tried to get more than one reading. But alas, we fell short.

Yes, time to do double time on the payments. In this interest rate environment, the costs of doing so prematurely are far smaller.

Alternative financing...I will look into this. As per usual, these things come when I am juggling many balls and hoping the world act rationally!! I know, wishful thinking!

On FEMA, well that would be outrageous. I think 99.99% of America is prepared to pay higher prices for services rendered when those services represent value and cost efficiency. But this kind of crap is is nauseatingly unAmerican. We can afford it. But I know guys like my Dad could not have. To have his fees subsidizing the tony areas of this country is ultra-high risk zones is just not right. Unfortunately, I see no one speaking for the little guy but him or herself.

Thanks for the reply and good luck with elections!

S.

[shades_of_idaho]

Sandpointian your real estate agent did not tell you were in the flood plain when you were considering your purchase? I was wondering if they are supposed to do that or if it is buyer beware?

There is some one from Hawaii considering buying a place here in Midvale that is right next to the river. Not quite in the floodway and the house is raised. Older mobile home. The seller told me they did not disclose to buyer house is in the flood plain. There is another reason this buyer might back away from this sale. Still it seams so wrong not to disclose the house is in a flood plain. The person is supposed to return to visit again shortly. I hope he asks questions of neighbors.

What is so interesting is how slight a raise in ground removes a property from the flood plain. Two houses side by side and one is not in the FP and the other is.

Chris

[DanKing]

There are a number of different sets of rates in the National Flood Insurance ProgramFor properties that have changed to a more hazardous flood zone and are therefore required by Federal law to carry flood insurance, you need good ADVICE. As a knowledgeable and experienced agent I have noticed there is much incompetency on the part of other flood insurance agents. I can't blame them too much as the NFIP is VERY complicated, time consuming and not at all profitable if you spend all the time to do it right - asking the dozens of questions to get the lowest set of rates for each property.

You need to look into the Preferred Risk Program under the Eligibility Extension. Your policy would be rated with the Preferred Risk Program set of rates for up to two years, and perhaps longer [search fema.gov for W-12054]. After that, the rate is the prior zone's rate. Eg, zone X changed to zone A. Start in the PRP and then renewals rated as zone X. Saves big-time. Don't let the policy lapse! Later assign this policy to the next owner - to improve the market value of your home. The Biggert-Waters Reform Act of 2012 will make changes in the NFIP, so pay attention for the regs that will be written in next few years.

Also, the property owner could purchase a flood policy before the new flood map is adopted, thereby locking in the old flood zone rates.

Consulting service available from a licensed knowledgeable agent for a very reasonable fee at FloodQuoteAdvicedotcom