Should you buy flood insurance? (Houston, Galveston: HOA, how much, new home) - Texas (TX) - Page 8 - City-Data Forum

diggity101 · 09-26-2013, 10:27 AM

I realize you're a troll, but please understand that you can't build in a floodplain unless you build the land up out of the floodplain or elevate the structure out of the plain.

SandyJet · 09-26-2013, 10:29 AM

Texas 100% untrue.

I was mapped into a flood zone in 2009. FEMA/NFIP intentionally did not notify a single person without a mortgage they were now in a flood zone. FEMA also pays such a low commission to flood insurance agents that they dont try to sell or advertise it. IF you call up however, they will sell it to you.

I asked FEMA about this after I got wrecked in Sandy. I was told older pre-flood mapped homes like my home are subsidized homes. They lose money on the policies. They would rather let you have no insurance as cheaper to do pay out.

Case in point my neighbor with a mortgage paid $1,600 in flood payments and got a check for $130K. I made no flood payments and got a check for $31,900. I saved the govt almost 100K.

Since Sandy FEMA/NFIP is pushing folks without flood to get flood insurance. However, after 7-2012 BW act most of those folks are paying full rate from day one. They did not want them before.

Also FANNIE/FREDDIE subsidized loans are backed by Uncle Sam, FEMA has an interest in not having their collateral wash away so they require you to insure. They could care less if your paid off home washes away.

Also I go some of my funds from HUD to repair not even FEMA. Other side issue is some towns even gave money to folks to rebuild some homes. WHY would they do that? Lots of folks were greiving taxes on abandoned homes and were going to take them down to be empty plots and pay 1k a year taxes. Some homes in NY or NJ pay up to 36K a year in property taxes. Over the course of time that would be a huge loss to school district and town. Better to give him 30K cash and a 100K Low Low interest loan to fix the place up.

The whole thing is crazy.

GTRdad · 09-26-2013, 10:29 AM

Quote:

Originally Posted by texas7

FEMA is just trying to recoup their funds for all the uninsured people that they've had to cover by making those who have it and those who are required to have it pay for everyone else. Like obamacare for flood coverage.

LOL flood insurance bails out the lenders. it will keep you going and pay your loan, who cares if the home values takes a hit because of the flooding, just keep paying your mortgage

AnonForThis · 09-26-2013, 10:32 AM

Sounds like another correction is coming to the housing market.

diggity101 · 09-26-2013, 10:32 AM

Quote:

FEMA also pays such a low commission to flood insurance agents that they dont try to sell or advertise it.

30% isn't that low

SandyJet · 09-26-2013, 10:33 AM

Flood insurance rate hike was tied to a college financial aid subsidy. They were on same bill when biggert waters passed.

So my increased flood insurance part of goes to helping kids go to college which is nice. Also it was passed around time of Obama care as govt could not afford to spend billions on obama care and subsidize flood.

In govt money goes down a black hole. By ending wasting taxpayers money on subsidizing flood insurance for folks in a flood zone the govt is just wasting that money on other things. Just how it works.