We do pay higher insurance. Much higher insurance.
Yes, the flood part of it is partially subsidized by the federal government, but people in flood zones are paying higher rates.
Why do people who build or buy in areas that they know are going to
- Thread starter walleye38
- Start date
Yes, the flood part of it is partially subsidized by the federal government, but people in flood zones are paying higher rates.
Any numbers on this ? I could not find any.
My homeowners goes up almost every year without me ever having filed a claim in the dozen years I have lived here, BTW.
For a modest 1800 square foot house, I'm between $2300 and $3000 a year and I've never had a claim in 23 years. I know people near me paying $5-6k without any claims.
So yes.....I'm subsidizing you.
They don't "expect" the govt to pay. The govt created a program and offered to pay. The govt removed the moral hazard from making the decision to build in these areas.
I’m starting to think my hill in central Ohio might be the only safe place on earth.
National data is what I am interested in.
I was able to discover the average cost of flood insurance in FL is $545, which I think is a helluva bargain considering what a hurricane can do to a house.
The site said that homeowner’s policies in FL cover neither floods or storm surges.
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The better question is "Why does the government pay for the stupidity of those who build in disaster prone areas?". And the answer is "Because enough stupid people are willing to vote for politicians who buy votes with taxpayer dollars by paying entitlements to stupid people.". It's the same concept as Hillary Clinton supporting government forgiveness of student loans. Why hold the person taking out a loan accountable for repayment when you can simply use other people's (taxpayer's) money to pay for the entitlement and buy a vote at the same time.
Or you can have both the lender and the school have some skin in the game as well.
Where are you at wholenit? We have a home at Ocean Isle Beach also getting whacked.
Numbers for NFIP
On the oceanfront
$8k per year for max coverage of $250,000 and that is for flood only
We are on 14 ft stilts ( by requirement) with 2 nice size dunes in front of us
Have had the home 17 years and thankfully ( don’t know yet about this week) haven’t ever sniffed a claim
Also have wind and hail and fire policies that are private. My w/h went up 25% this year and again we have never filed a claim.
I am not complaining we are very fortunate but it doesn’t feel like we are being subsidized.
Nobody should live east of the Rockies because it's tornado and hurricane prone. Nobody should live west of the Rockies because it's earthquake, fire and mudslide prone.
So has almost everybody else’s including car insurance, health insurance, and a number of others. So what’s your point. I’m willing to bet that my insurance is probably 3 to 4 times greater per square foot than yours.
First off that is not even close to what someone in a flood zone pays. $545 per month is more like it.
Second, that will only cover you for a flood. That has nothing to do with the damage from a hurricane. Most damage is from the wind.
Lastly you need to think of all the condos and high rises too. The person on the 10th floor is paying for flood insurance too. You think that person is EVER going to make a claim on his own unit?
You left out the part where the government keeps rebuilding your house after it gets destroyed.
I don't understand this post at all.
1) If you don't live in a flood zone, the standard homeowners policy does not cover flood damage, so flood claims are impossible. That is the problem in Houston -- large percentage of the flood damage was not in flood zones and not covered by any insurance. Generally the only people covered in event of flood are people who are required to buy flood policies by their mortgage lender -- and that is houses that are located in flood zones.
2) To equate flood insurance to earthquake, tsunami etc is ridiculous. In fact the federal government does NOT pay to subsidize insurance in earthquake zones. We lived in Seattle, which is overdue for an 8 or 9 level earthquake that would absolutely level the residential parts of the city. Almost nobody's homeowner's policy will help when that happens. You can buy earthquake policies but they are extremely expensive and extremely limited coverage -- because they are not subsidized by the Uncle Sam. I just think it's weird that the government will subsidize insurance for luxury vacation properties in the path of hurricanes, but not for any other kind of risk.
3) Isn't it funny how wealthy people who rail about big government and "socialism," who would rather have people go bankrupt and die from medical conditions, who want to repeal Obamacare -- those very same people feel entitled to have the government subsidize their vacations? We call stuff socialism when it benefits somebody else. When it benefits us, we call it essential government services. Rich people are usually all for socialism as long as it's reverse socialism -- taxing the many to subsidize the few.
1) If you don't live in a flood zone, the standard homeowners policy does not cover flood damage, so flood claims are impossible. That is the problem in Houston -- large percentage of the flood damage was not in flood zones and not covered by any insurance. Generally the only people covered in event of flood are people who are required to buy flood policies by their mortgage lender -- and that is houses that are located in flood zones.
2) To equate flood insurance to earthquake, tsunami etc is ridiculous. In fact the federal government does NOT pay to subsidize insurance in earthquake zones. We lived in Seattle, which is overdue for an 8 or 9 level earthquake that would absolutely level the residential parts of the city. Almost nobody's homeowner's policy will help when that happens. You can buy earthquake policies but they are extremely expensive and extremely limited coverage -- because they are not subsidized by the Uncle Sam. I just think it's weird that the government will subsidize insurance for luxury vacation properties in the path of hurricanes, but not for any other kind of risk.
3) Isn't it funny how wealthy people who rail about big government and "socialism," who would rather have people go bankrupt and die from medical conditions, who want to repeal Obamacare -- those very same people feel entitled to have the government subsidize their vacations? We call stuff socialism when it benefits somebody else. When it benefits us, we call it essential government services. Rich people are usually all for socialism as long as it's reverse socialism -- taxing the many to subsidize the few.
Nice take - any more false flag accusations you want to wage against your fellow posters? Why did you leave Seattle? Not progressive enough for you?
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Seems like a bargain because you know sweet FA about the subject.
I pay around $400 a year. Seem like a bargain? Well, considering the only thing that would flood my home would be a Category 5 hurricane, and a Category 5 hurricane has never hit the East Coast of Florida north of Ft Pierce....
Is paying $400 a year for something that is likely to never happen a bargain? When TS Faye rolled through here and dumped 27" of rain in 24 hours, my house was high and dry.
Now, my friends who do live in flood zones, or within the 1000 ft line from the coast....they are paying 5-10 times that. Most of them can't afford to carry it m
Your cherry picked number doesn't tell the story because there are a lot of people like me who can get it at a reasonable price but don't have to buy it....that keeps the average premium lower.
The people in flood zones are paying plenty for flood insurance.
well if you go every Friday as we do you probably already have
. -good luck
Send the tab to 83wuz and tboyer. They like to think they're paying. Let them.well if you go every Friday as we do you probably already have
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I'm not going to respond to the political cry baby rant portion of your post.
You presume to lecture me on what homeowners insurance vs flood insurance covers. Gee, thanks, I wasn't aware of that
. You state outside of flood zones flood insurance claims are impossible. Patently wrong. I do not live in a flood zone. I have flood insurance. 2/3 of claims in the national flood insurance program are outside of flood zones. Many of my friends and neighbors carry it even though it isn't required. So your generalization is based on anecdotal data. Yes, many people who aren't required to have flood insurance but don't should carry it. Shame on them.Also, you talk about the wealthy. Do you think only wealthy people live in these areas? You see the footage on TV of the multi million dollar beachfront mansion sliding into the sea, but do you know what is in the blocks behind that? Regular folks doing regular jobs.
No, earthquakes are exactly like floods in that the damage from them is usually so widespread, insurance companies couldn't possibly cover it. The difference is floods happen all the time, every year, in every state.
ok Einstein help me with this.
I presume your comments are illustrative since I have never filed a claim, so assuming they are
.please explain what or who I contact to rebuild my house for free
. surely you don't mean utilizing my flood insurance do you? you do know what the term insurance means correct?
. I hope and doubt the damage will be enough to total the house [14 ft stilts plus natural elevation] but if it did the coverage is $250,000 which is the max allowed and will not be enough to rebuild the house.
. my wind and hail policy [which is more likely] than my flood, is privately placed and is half what my flood is, and covers replacement value.
.so again please point me toward where I can get a free rebuild.
I was being facetious - pointing out the absurd claims of some other posters here by being even more absurd.
Don't get carried away, you're not subsidizing anyone (just because you haven't filed a claim).... you're the one who lives in a hurricane prone area.
Boyer,
I would be interested in you justifying your assertion with a few facts. I say this because we have a home [condo] in SoCal and a home at the beach in NC. I already explained our flood insurance. In Ca. our association is debating getting earthquake insurance. It is cheaper on a dollar replacement value analysis either individually or for the association as a whole. I presume that is because they think the risk of earthquake is less than the risk of flood.
One more point to those who lament paying my insurance bill. In the last few years banks have begun to accept private, not NFIP flood insurance if you have a mortgage. NEWSFLASH it is same price or cheaper than the NFIP costs which you guys think you are paying.
I reread your post and thought you might be. Sorry, just a little sensitive right now.
I didn't want to pay for Dick Cheney's war in Iraq- where do I apply for my refund?
While we're at it, I don't fly anymore either- so I don't want to pay for your airports, Homeland Security, or the FAA, either.
Geeze dude. You forgot half the state of NC that's about to be under water and without power. Lol.
Well, I could type for hours on topics like the 1000 foot line, the actual statistics of hurricane strikes in Florida- where they hit and at what strength, Allstate Floridian and the shenanigans insurance companies play with the risk and payout numbers (the government of Florida complained about it).....
1. My actual risk of catastrophic damage is quite low.
2. I pay a higher premium than my actual risk would dictate. The reasons for this would take me a long time to explain.
3. Every time your insurance company goes in front of the state insurance board to ask for a rate hike, they have to show the numbers. The fact I pay a lot, but have no claims does keep your rates down.
Subsidized might be too strong a word, but I do help you.
Allstate's actions post-Andrew should have necessitated someone coming in and shuttering the company. It was that bad. How would the haters here like having their policy canceled AFTER a storm? Where I grew up, we just called that stealing.
Best beach house I've ever seen was down by Kill Devil Hills. All block, no windows, 2 steel doors and a flat steel roof. No porch, no nothing, sitting on a postage stamp piece of land for a cool 1.2 million beach front property. I thought, now that's my kind of ocean front property.
Let's assume that you are insured by State Farm (I am), would your $3000 premium in FL subsidize/help my $1500 premium in the midwest on a home nearly twice the size?
Slu, I know it's a copout, but I'm honestly a little tired of this whole thread, and that isn't directed at you..... I've lived this for 20 years.
My 1-3 kind of explained it.
When State Farm goes in front of your state insurance board to ask for a rate increase, they have to justify the why. Since I'm paying a rate based on hurricane risk that is a little bit inflated, plus I've made no claims. Therefore, it makes it harder for State Farm to raise rates.
I don't know how else to state it......
Peace out. I'm honestly done with this thread.
