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Location: Big Island of Hawaii & HOT BuOYS Sailing Vessel
5,277 posts, read 2,801,130 times
Reputation: 1932
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So are you living in a flood zone with rising seas and bigger rain storms? Well lucky you benefits from the government insurance program which is a money loser.
From good article on issue:
"“We put ourselves in a big damn hole is what we have done,” said Kruck. “We’ve got tons of residences in low-lying areas that aren’t paying the economic costs.”
Most private insurers don’t write flood policies. But Kruck said those that do won’t be writing policies if the risk is too high."
So are you living in a flood zone with rising seas and bigger rain storms? Well lucky you benefits from the government insurance program which is a money loser.
From good article on issue:
"“We put ourselves in a big damn hole is what we have done,” said Kruck. “We’ve got tons of residences in low-lying areas that aren’t paying the economic costs.”
Most private insurers don’t write flood policies. But Kruck said those that do won’t be writing policies if the risk is too high."
Even if you don't buy the insurance, if you live in a flood zone your house value is still inflated because others can get cheap insurance.
What cheap flood insurance? Mine is $6,000/year and has a payout limit of $250,000 for building and $100,000 for contents per occurrence (as they all do).
FYI, almost all flood insurance policies aren't subsidized. FEMA flood insurance hasn't been subsidized at all since 2012. And even before then, only 20% of the flood policies were ever subsidized (only buildings constructed pre-FIRM qualified for subsidies. FIRM: Flood Insurance Rate Maps, originating in the 1970s).
Here's the kicker... According to the flood zone maps, I'm in the riskiest rate zone and therefore pay the highest premium rate. But my neighbors 8+ houses away from oceanfront are in a less risky zone, and pay a much lower premium rate. I and my oceanfront neighbors have never flooded. The neighbors 8-15 houses away from oceanfront ALWAYS flood after extreme weather events (nor'easters, tropical storms, hurricanes, waterspouts, etc.) Why? They're in a topographical dip. After Hurricane Matthew, which resulted in only heavy rain, they were flooded 3 feet underwater for a month, until it was their turn for the local government to come and pump their floodwater into the ocean.
So... They have claims time after time, yet still pay a lower premium rate than I do.
Now you know what's wrong with flood insurance. Risk isn't priced correctly.
Last edited by InformedConsent; 08-01-2017 at 04:15 AM..
Location: Big Island of Hawaii & HOT BuOYS Sailing Vessel
5,277 posts, read 2,801,130 times
Reputation: 1932
Quote:
Originally Posted by InformedConsent
What cheap flood insurance? Mine is $6,000/year and has a payout limit of $250,000 for building and $100,000 for contents per occurrence (as they all do).
FYI, almost all flood insurance policies aren't subsidized. FEMA flood insurance hasn't been subsidized at all since 2012. And even before then, only 20% of the flood policies were ever subsidized (only buildings constructed pre-FIRM qualified for subsidies. FIRM: Flood Insurance Rate Maps, originating in the 1970s).
Here's the kicker... According to the flood zone maps, I'm in the riskiest rate zone and therefore pay the highest premium rate. But my neighbors 8+ houses away from oceanfront are in a less risky zone, and pay much lower premiums. I and my oceanfront neighbors have never flooded. The neighbors 8-15 houses away from oceanfront ALWAYS flood after extreme weather events (nor'easters, tropical storms, hurricanes, waterspouts, etc.) Why? They're in a topographical dip. After Hurricane Matthew, which resulted in only heavy rain, they were flooded 3 feet underwater for a month, until it was their turn for the local government to come and pump their floodwater into the ocean.
So... They have claims time after time, yet still pay a lower premium rate than I do.
Now you know what's wrong with flood insurance. Risk isn't priced correctly.
This reminds me of an attempt I made to get earth quake insurance.
The quote: $8,000 per year, $40,000 deductible and then only 60% coverage on everything over and above $40,000.
I asked the underwriter:
Are all my rock walls covered? No.
The concrete patio. No.
The underground connections to pool and hot tub. No
The pool walls. No.
The glass tile on the house exterior. No.
In brief nothing I was afraid of being damaged in an earthquake was covered.
"One house outside Baton Rouge , valued at $ 55 ,921 , has flooded 40 times over the years , amassing $ 428 ,379 in claims.
A $ 90 ,000 property near the Mississippi River north of St. Louis has flooded 34 times , racking up claims of more than $ 608 ,000 . "
The NFIP , which must be reauthorized by the end of September , is nearly $ 25 billion in the red — a debt that administrator Roy Wright says he sees no way to pay back
I am right on the gulf and go bare. No way i am paying for flood Ins every year.
It's grossly mismanaged. FEMA has their flood risk maps all wrong, even though our area was just redrafted within the past year.
Having never flooded for as long as my house has stood here since 1983, on pilings with the lowest living area level at a 14' elevation (per my elevation certificate), and the fact that my property has accreted and my barrier dune has moved seaward 5' since 2012, it's ridiculous to charge me $6,000/year for no claims ever in 34 years. Meanwhile, others pay next to nothing and rack up hundreds of thousands in repeated claims.
Location: Big Island of Hawaii & HOT BuOYS Sailing Vessel
5,277 posts, read 2,801,130 times
Reputation: 1932
Florida isn't the only problem State.
“3,246 properties in the Garden State have together filed damage claims under the national flood insurance program that total $660 million,” he said.
“These are properties that have been repeatedly damaged in floods, and repeatedly rebuilt through the national flood insurance program.”
FEMA needs to price actual risk correctly. Currently, they don't.
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