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The number one reason many do not insure their homes is they trust that the government will run to their rescue and give them a new home if they didn't bother with insurance.
The number one reason isn't that people don't insure their homes, most folks have home owners insurance.
The trouble is, they don't understand that flood insurance is quite a separate issue for many home owners insurance policy.
Has little to nothing to do with "trusting the government".
Flood insurance is required by mortgagers if the house is in the flood prone area. So the statement that "people don't know they need it" isn't exactly accurate. It is true that some drop it once the mortgage is paid off. I know several people who have done so. All have had reason to regret their decision.
I was on the edge of the high impact zone (that may change with the new maps) so did not buy flood insurance. If my house is now in the zone I will.
Flood insurance is required by mortgagers if the house is in the flood prone area. So the statement that "people don't know they need it" isn't exactly accurate. It is true that some drop it once the mortgage is paid off. I know several people who have done so. All have had reason to regret their decision.
I was on the edge of the high impact zone (that may change with the new maps) so did not buy flood insurance. If my house is now in the zone I will.
The issue is that New York isn't considered a flood prone area. But I bet that will start to change.
The issue is that New York isn't considered a flood prone area. But I bet that will start to change.
Maybe not. Insuring against flash floods that happen once in a 1000 or 5000 or 10000 years are a waste of money. New York has always been recognized as at risk for hurricanes/tropical storms but not necessarily flood prone. What the new maps will show I haven't a clue.
Actually NY has always been considered a danger zone. Go back a couple years and find the story in National Geographic on the subject. If I remember right, a Cat 4 direct hit would flood the entire region.
There are also history reports (lore is probably a better word) that the natives were aware of the dangers and avoided the area. According to reports there was a period of intense storms in the region. They've run soil analysis on the historical tidal surges and they were huge. Of course there wasn't any development to absorb the force; that said, based on the models the region has a history of Cat 4/5 storms.
Actually NY has always been considered a danger zone. Go back a couple years and find the story in National Geographic on the subject. If I remember right, a Cat 4 direct hit would flood the entire region.
There are also history reports (lore is probably a better word) that the natives were aware of the dangers and avoided the area. According to reports there was a period of intense storms in the region. They've run soil analysis on the historical tidal surges and they were huge. Of course there wasn't any development to absorb the force; that said, based on the models the region has a history of Cat 4/5 storms.
Its a danger zone, as is every coastline. But the odds, and how often this happens is very very low for New York and the North East. Now, that may change with back to back hurricane years, but it wasn't a flood zone before.
Doesn't matter if they didn't have hurricane insurance. People along the gulf coast learned that lesson the hard way. Though they had flood insurance, it didn't count if the flood was caused by hurricane/tropical storms.
"But in New York City, where the threat of flooding hasn't been as obvious a threat, only 1% of housing units had the coverage. In Moonachie, N.J., which was devastated by the storm, only 21% were insured, the analysis found. That is lower than in some other cities in New Jersey—33% in Hoboken, 41% in Atlantic City, 47% in Seaside Heights and 66% in Cape May."
Average premium: $585 per year.
Let's put this in perspective. For about the price of a cup of coffee per day, or half a cell phone bill, or a few drinks and nachos at Chevys, one could purchase subsidized insurance to protect their largest asset. Last year after Hurricane Irene, the National Flood Insurance Program actually reached out to many of these same people in an effort to educate and enroll them in the program.
At some point Americans need to grow up and accept responsibility for themselves. Some of you believe that the taxpayers will not end up paying for these people. I would bet before it's all done the taxpayer will foot the bill.
I promise you that all those homes destroyed or damaged by the winds and storm surge will not receive a single penny from their flood insurance because it wasn't a flood. It was a storm surge from a hurricane. No hurricane insurance, no insurance check. If a tree fell on the home then the homeowners insurance may cover the damage. There are some schisters who'll try to fight against paying out arguing it's hurricane damage.
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