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That's when someone uninformed and not educated is making a claim that they think they heard or read from someone else who's uninformed and not educated.
Since NONE OF YOU seem to live in a zone that you chose to insure for FLOOD (which is an ADJUNCT to homeowners insurance which STILL COVERS HURRICANES), here's some FACT:
I have Florida hurricane insurance that PAYS FOR HURRICANE DAMAGE and FEMA flood insurance that PAYS FOR FLOODING and am not in a floodplain zone and do not have a mortgage.
It's $325 per year for the flood with a payout of $80,000 for the dwelling not including contents with a $2000 deductable and I live a short walking distance from the FLorida Intracoastal in a condo.
My homeowners is $1200 premium with a payout of $80,000 for the dwelling not including contents this year with a $2000 deductable but LAST YEAR was only $600 for the same coverage two blocks away. In this new condo I'm 1/4 of mile closer to the Intracoastal.
My covered replacement contents are around $30,000 onboth policies.
And it is crystal clear on the FEMA policy how it's covered so homeowners who claim ignorance are just being disengenuous or trying to get a write up in the local paper or on City Data!
Oh snap all assumptions destroyed LOL.
But my dudes, let me know where I can make $120,000 in 7 years on a $7000 deposit somewhere. I think the term "self insured" is confusing some of you.
Policies offer up to $250,000 coverage for homeowners, up to $100,000 for personal property and up to $500,000 each for business contents and building repairs.Flood insurance protects two types of insurable property. The first covers your building, the second covers your possessions; neither covers the land they occupy.
1. Relax and mix-in some decaf.
2. The numbers you listed for flood insurance are orders of magnitude less than the best quotes I've received for my lake house in Texas. Likely BECAUSE YOU ARE NOT IN A FEMA FLOOD ZONE.
A dump doesn't get $8,000 to $10,000 per week in rentals for about half the year. No one would buy only $70,000 worth of coverage on a home that has a high value of rental income.
I'd be a little cautious on taking peoples stories as completely accurate as they jumped from their premiums to someone elses payout so we don't know what the other person was paying or their coverage etc. for sure.
As an example:
Assuming that the expenses on the policy are 20%.
Assuming your coastal property gets smacked every 15 years for a 70k loss.
70k/15/0.80 = $5,800 annual premium (approx.)
Your math point is legitimate, no surprise there, thanks for making it.
I can tell you from looking this stuff over hard a couple of different times and reading about flooding in Houston etc. etc. the other guy's numbers are representative in a snapshot fashion.
I made my decision to go naked per flood insurance considering the value of the lake house itself and the fact it's on a slab foundation which can be a monumental plus per flooding v. best guess chances that it would flood and how badly in the next 6-8-10-12 years v. the fact the house has not flooded over 51 years v. likely costs to repair or replace v. flood insurance costs and payout data per the area v. the fact if push came to shove demolishing and rebuilding the house would be an opportunity to make some money/we are thinking about doing so anyway........although that last bit is a kicker not a decider if you take my point.
A dump doesn't get $8,000 to $10,000 per week in rentals for about half the year. No one would buy only $70,000 worth of coverage on a home that has a high value of rental income.
*shrug* We're not disagreeing on the core point that there can be unfairness and inefficiencies in any insurance program...especially if there is no competition or incentive to even break even.
Exactly. You're better off investing what you would have paid in annual premiums. The FEMA payout would be covered in just a few years and you wouldn't have to keep paying premiums in perpetuity.
You can get a residential policy that will not cover flood damage easily enough. What's interesting is that residential policies for the coast don't cover wind and hail, either. That's yet another separate policy. Many homeowners have to pay annual premiums on 3 different policies: homeowners, wind and hail, and FEMA flood. That adds up, but at least the wind and hail policies aren't so outrageously expensive and the payouts are more in line with the premium costs.
It is a scam for some, and a ridiculous subsidy for others like the home that has had 22 claims earlier in this thread. FEMA flood insurance is horribly mismanaged and the premiums charged DO NOT adequately reflect the risk. Some are WAY overcharged, and others pay little to nothing even with a multiple claim history.
Nope. Real people. Real events. We lose a few houses out here every so often and the facts are the same... ridiculously low FEMA payouts because the homes are about 40 years old. $7,000 annual premium. $70,000 FEMA payout.
Nope. Homeowner's policies DO NOT cover hurricane damage. They also do not cover wind and/or hail damage from storms including hurricanes. All 3 are separate policies: homeowner's, wind and hail, and FEMA flood. Mortgages typically require all three.
Yeah, they do. At least here they do, not all states mandate separate policies for each loss class. I have a Homeowner's policy that covers all damage from a hurricane, with a caveat I'll get to, except flooding. I'm just outside the flood zone (although still within the state designated Critical Area, but that's for runoff control and vegetation/ground cover) so I don't carry flood insurance.
The caveat here in Maryland (and maybe other states) is that if your damage is caused by a named storm your dollar deductible is suspended and becomes a percent of the damage. For my insurer it's 10% of cost. So if I have $50,000 of damage my deductible is $5000 instead of the policy's $1000.
That's why I went sort of nuts when those dumbasses on the Weather Channel started naming winter storms.
Your math point is legitimate, no surprise there, thanks for making it.
I can tell you from looking this stuff over hard a couple of different times and reading about flooding in Houston etc. etc. the other guy's numbers are representative in a snapshot fashion.
I made my decision to go naked per flood insurance considering the value of the lake house itself and the fact it's on a slab foundation which can be a monumental plus per flooding v. best guess chances that it would flood and how badly in the next 6-8-10-12 years v. the fact the house has not flooded over 51 years v. likely costs to repair or replace v. flood insurance costs and payout data per the area v. the fact if push came to shove demolishing and rebuilding the house would be an opportunity to make some money/we are thinking about doing so anyway........although that last bit is a kicker not a decider if you take my point.
Exactly. 40 year old homes out here. Never flooded. No claim history. They're all on at least 14 ft pilings and meet FEMA building codes. Only a few sometimes taken out during a hurricane or severe tropical storm. The premiums are huge and the payouts are very low.
From Long Island, down the Jersey Shore, along Maryland's cost all the way down to Savannah, you have lavish, expensive homes unaffordable to the vast majority of Americans, and each time a hurricane stops by, they flatten these homes, and FEMA (our tax dollars) foots the bill. The wealthiest don't need handouts to protect assets that are built in flood-prone areas.
Let the rich people rebuild their unsustainable communities on their own dime.
Last edited by midnight_thunder; 08-09-2022 at 10:30 AM..
Reason: grammar
From Long Island, down the Jersey Shore, along Maryland's cost all the way down to Savannah, you have lavish, expensive homes unaffordable to the vast majority of Americans, and each time a hurricane stops by, they flatten these homes, and FEMA (our tax dollars) foots the bill. The wealthiest don't need handouts to protect assets that are built in flood-prone areas.
Let the rich people rebuild their unsustainable communities on their own dime.
$250,000 (maximum FEMA payout) does not rebuild a lavish home.
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