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My bozo neighbor without insurance got his $32k check on the spot within a few days from those awesome folks at fema. I'm beginning to believe I'm the clown because I have insurance and still haven't recieved any money yet. The rate things are going I'll be the one with the boarded up house.
That is absolutely crazy! Again, why have insurance?
That is absolutely crazy! Again, why have insurance?
Flood Insurance is subsidized. Owners only pay 1/3 the prem they should pay.
FEMA if it had its choice would rather pay out to folks without flood insurance.
Average person near me got like 150K from Flood Insurance and folks without flood got 31,900
Which means the folks with Flood got a 100K handout and folks with Flood got a 31,900 handout.
In reality folks with flood should have got 50K and folks without would have got zero.
But that would have caused massive foreclosures and bankruptcies and created tent towns like rural india. So govt helped the folks out, that is what americans do
That's what our brain dead government does to encourage stupid behavior and to waste money by not charging enough for the risk.
Quote:
Before 1950 flood insurance was part of the standard homeowner’s insurance policy. During the 1950s increasingly high correlation of losses by holders of flood policies of the same company caused many insurance companies to begin excluding flood coverage from standard insurance policies, selling flood insurance separately. Over time, insurance premiums collected were insufficient in covering payouts after major flooding events. In the 1960s flood insurance became completely unprofitable and private companies no longer offered flood insurance policies. This meant that the costs of floods were borne by property owners, many of which could not afford such high disaster costs. The government provided public disaster aid to affected property owners. In 1968, the National Flood Insurance Act established the National Flood Insurance Program (NFIP), which allows property owners to purchase insurance from the U.S. government that covers certain losses from flooding. The intended purpose of the program was to reduce the overall costs of floods by incentivizing flood risk management and to pool flood risks nationally to lessen the blow to individuals hit by major floods. This insurance is not set by the market risk valuation. It is less expensive than the private insurance company rate would be. This is accomplished either by the program running a deficit and borrowing money or by subsidies from the national government. Either way, the property owners with NFIP policies are receiving government subsidies to live in areas with high flood risk.
So unless you're a farmer or fisherman there's not much reason for me to have to subsidize a person wanting a view of the ocean.
That is absolutely crazy! Again, why have insurance?
Yep. It is crazy. We are in the same boat. After Sandy, our basement flooded from floor to ceiling. H paid out of pocket for new HW heater, furnace, washer and dryer, plus Sheetrock installation. We just finished installing ceramic floor tiles as well. Total cost we shelled out was around $20K. FEMA has given us ZIP, just a $5K "advance" that was released as an emergency measure 3 weeks after the storm. We had 3 different adjusters call within the last 2 months asking us for pictures (which they should already have since the first adjuster took them right after Sandy!). Then we had another adjuster call and ask for more info (even though we already gave them the same info!). Oh, and did I mention I work for a large ins company that also underwrites a ton of flood ins policies across the US?? yeah. Irony at its finest.
I joked to DH that we will finally get a FEMA check the day after we sell the house...in 2015!
I couldn't wait for this flooding to happen! When I bought my house and found out it was in a flood zone and that I needed to have a flood policy I wanted to get my money's worth out of the premium so now I feel vindicated! And now that the rates are going up I hope we have more frequent flooding to justify the additional cost. I had a blast during the hurricane, it was really exciting, like an adventure. We were having so much fun that even after the power came back on we left the breakers off an additional week. I love disaster movies so the whole experience was awesome. Hopefully all the doom-n-gloom people are right and we will have more frequent flooding and even worse than Sandy! Good times!
my feeling too. im tired of the tax payer footing the bill for folks who made bad choices.
why does my tax money i pay have to go to pay for those who chose to save money on insurance . especially when they knowingly live close to the water whether they have not to date had a flood or not.
you gamble you lose.
FYI most folks did not live near water. For instance my area was put into a flood zone in 2009. Homes that were 80 year old never saw a drop of flood in their lives.
FEMA/NFIP only put folks with mortgages at that time into flood insurance and never even notified the mainly older folks they were now in a flood zone.
I asked FEMA/NFIP about that and point blank they told me pre-firm older homes are subsidized with their flood insurance they dont encourage or tell folks without a mortgage to get flood as it is a loss leader.
conforming mortgages that are written ed by uncle sam, freddie/fannie/fha/va flood insurance is required as home is collateral on mortgage and they dont want their collateral washed away.
Most old folks who owned house outright who were 1-2 miles from beach, who had a 30 year mortgage that was long paid off had no clue this was coming and some even thought this was covered by homeowners.
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yeah. Irony at its finest. 
