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Long overdue but still many at risk properties that are uninsured but it's progress. Problem is that if rates rise too much some may walk away from FHA mortgages and taxpayers will be responsible. Just looking at many of these homes along the shoreline right at waters edge its just a matter of time. We are spending billions for shore replenishment when we should be retreating.
Quote:
FLOODING THE ZONE — It's finally happening: Property insurance rates are going to reflect the actual risk of a home flooding.
Millions of flood-prone properties will start receiving more-accurate insurance premiums in a long-awaited federal adjustment of flood insurance rates that takes effect today, Thomas Frank reports for POLITICO's E&E News.
Almost 4 million policyholders will see increased rates under the move by FEMA's National Flood Insurance Program, which sells most U.S. flood coverage. About 200,000 of them will face sharp increases, while the other 3.6 million will see moderate increases. The adjustments will happen as policyholders renew their coverage.
The changes don't solve the program's basic problem of insolvency — they just shuffle who pays what. The shift could help Americans adapt to climate change: By making insurance costlier in flood-prone zones, it will discourage development there, just as floods are getting worse.
Not seeing anywhere in the article that indicates that they actually have insurance rates that match the risk but rather increased them by some unreleased amounts.
Also, not sure I've seen anything stating that flooding is getting worse as after all it's "climate change" (points to Lake Mead) but oh well, our news media is sloppy at best in most cases. Often "climate change" is thrown in to grease a needed increase through as some will just accept it even though the reason may more accurately be other things.
Program has been a loser since inception, they've been trying to fix it for a long long time so hopefully this short or details article(s) means they actually did something effective.
In my area the Feds came through about 15 years ago and redrew the Flood Plane maps which in some towns increased their exposed areas to the point of being ridiculous. The home owner always has a choice to buy flood insurance but they are not required to being "Grandfathered" in. However when the property is sold and there is a mortgage that Bank now requires the new homeowner to get the insurance and it is not cheap. The insurance can be several thousand dollars per year. That cost is never going away and it will only go up. This has lead lots of potential buyers to first ask if the property is in a flood zone and in many cases if it is they are not interested.
It is easy to imagine an ocean front property or even one close to it being damaged by a big storm and the surge of water it brings but the people that can afford those properties do not have an issue paying the flood insurance. It is the homeowners that are a mile plus from the beach that are burdened with rising costs of insurance.
In other words, remove the rabble from the waterfront property. The ultra rich have no problem absorbing higher flood insurance.
It should be none of the government's business.
Hard to say, they crappy news article throws in buzz words and claims decreases for cheaper properties but without actual details it's utterly meaningless. (ie. Hey, we're throwing a 20% premium increase on but mandating a 100k deductible which might be a price decrease for cheap properties without reflecting reduced coverage.)
If they did that, it would be quite interesting because the program has always been a loser.
It has a wide coalition across party lines of senators and congressional reps from NJ to TX that would fight against ending the program.
I have heard of these beachfront properties in hurricane prone areas get cheap federally subsidized insurance using the excuse they want to preserve the small towns near the coast. These homes cost 1+ million $ taxpayers are subsidizing insurance for wealthy people.
In my area the Feds came through about 15 years ago and redrew the Flood Plane maps which in some towns increased their exposed areas to the point of being ridiculous. The home owner always has a choice to buy flood insurance but they are not required to being "Grandfathered" in. However when the property is sold and there is a mortgage that Bank now requires the new homeowner to get the insurance and it is not cheap. The insurance can be several thousand dollars per year. That cost is never going away and it will only go up. This has lead lots of potential buyers to first ask if the property is in a flood zone and in many cases if it is they are not interested.
It is easy to imagine an ocean front property or even one close to it being damaged by a big storm and the surge of water it brings but the people that can afford those properties do not have an issue paying the flood insurance. It is the homeowners that are a mile plus from the beach that are burdened with rising costs of insurance.
The problem with being a mile from the coast is that the surge can back up the rivers etc. and then the rainfall has nowhere to go. It's not just "crashing waves" doing the damage.
Not seeing anywhere in the article that indicates that they actually have insurance rates that match the risk but rather increased them by some unreleased amounts.
Also, not sure I've seen anything stating that flooding is getting worse as after all it's "climate change" (points to Lake Mead) but oh well, our news media is sloppy at best in most cases. Often "climate change" is thrown in to grease a needed increase through as some will just accept it even though the reason may more accurately be other things.
Program has been a loser since inception, they've been trying to fix it for a long long time so hopefully this short or details article(s) means they actually did something effective.
Risk assessment for those rated 2.0 is increasing but if will take time, they are still fighting over the percent increase anywhere from 9-18% per year to achieve proper risk assessment. The fear is that some of these homeowners will drop insurance.
Plenty of articles on the impact along the shoreline from climate change along with sinking land. That doesn't include the impact of sudden moisture events inland most recently in Kentucky and last year in North Carolina for those who live in flood zones or on river banks.
I have heard of these beachfront properties in hurricane prone areas get cheap federally subsidized insurance using the excuse they want to preserve the small towns near the coast. These homes cost 1+ million $ taxpayers are subsidizing insurance for wealthy people.
Results vary greatly.
-Flood insurance definitely subsidized.
-many of those properties pay a ton of property taxes as well as generate tourist revenue while not putting a strain on local services like schools etc.
Would be one doozey of an analysis to do correctly.
-Flood insurance definitely subsidized.
-many of those properties pay a ton of property taxes as well as generate tourist revenue while not putting a strain on local services like schools etc.
Would be one doozey of an analysis to do correctly.
I would say wealthy homeowners probably contribute to the local economy with their need for services. I don't see the reason to subsidize flood insurance if someone can afford to pay. I would support subsidized insurance for small business.
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