Skip to comments.No big rush to buy flood insurance
Posted on 03/13/2006 8:29:23 AM PST by oblomov
The raging hurricanes and floods last year haven't prompted a run on flood insurance.
A survey by the large insurer, Chubb Group, finds that only 8 percent of 700 queried homeowners saw the destruction of Katrina and Rita as motivation to get some insurance for their home. Only 14 percent of the total group has flood insurance.
(Excerpt) Read more at chron.com ...
Maybe they can't afford it.
When we bought our first house, the lender required us to get flood insurance because the house was in an area that could flood/ did flood (after 13" of rain in less than 24 hours.) No big deal--the insurance was quite inexpensive.
How interesting, as a home owner in Florida I was forced by my mortgage company to purchase flood insurance. It's the smallest of our 4 forced policies. Not expensive at all really.
If you're located in a "flood zone" you can't get a loan without flood insurance.
What amazes me is that so many in NOLA didn't have it-I assume that most homes in NOLA had mortgages on them...and you'd think that the entire city would be designated a flood zone...so how did they get away without it?
Since Katrina Congress has already shifted billions to FEMA to pay loses. This is besides all the federal money from FEMA/SBA in the form of low or no interest loans.
In other areas of the county where houses have flooded over and over FEMA may put the area in a high risk flood zone. This means, for example, that the house must be elevated before it can be rebuilt. But how do they do that in New Orleans where you'd have to have the houses WAY UP in the air? They won't do that, they will do what they did before and sell cheap flood insurance in the New Orleans area as the once again pretend that properties WAY BELOW sea level won't flood again in 100 years. Then they WILL flood and all the taxpayers get to through more good money after bad.
Abandon most of New orleans.
It usually doesn't cost much.
That's a question I've been asking myself; I keep reading that any "payout" wouldn't pay their mortgages, and I keep wondering why they need a payout to pay their mortgages.
I'm not sure if flood zones are federally regulated or state. All I can assume is that the state did not consider New Orleans and surrounding areas to be prone to wide spread flooding and did not approve forced flood insurance.
I'm in a A flood zone area of S. Florida and am required to have flood insurance. This years policy renewal just came in for $437. If a person can nor afford less than $500 they have no business owning a home.
Just don't ask me how much my wind storm, hurricane and home owners policies came out to be.
New Orleans has a lot of old homes. I'm sure a good number of them are owned outright by people who've long since paid their mortgages off.
(Denny Crane: "I Don't Want To Socialize With A Pinko Liberal Democrat Commie. Say What You Like About Republicans. We Stick To Our Convictions. Even When We Know We're Dead Wrong.")
Then why do I pay $930.00 a year for it......?! :)
Then they couldn't afford their home in that location. It is time to end the gross federal subsidies in flood insurance that only encourages poor choices.
Well, we don't exactly need flood insurance in INDIANA...what kind of survey was this, anyway? Who was asked????