(Axios) The flood insurance crisis facing Americans

[WorldWatcher]

Mine is done by zip code, and while my risk is low others in the zip code are closer to the water.

For the National Flood Insurance program rates are set on individual properties (not zip codes) and are based on property value*** and as a function of flood risk. Flood risk is evaluated based on flood data. The higher the risk zone the higher the insurance.

*** Technically - IIRC - it's insured value as I think you can take out insurance for less that the full value. Someone can check and correct me on that.

WW

 

[WorldWatcher]

I understand private home insurance and purchasing flood insurance if your home is in a designated flood zone. Many of the homes that flooded and that were washed away were not in a flood zone region that would have required having flood insurance. So I'm talking about federal relief funding. As I said, I've heard a report that obtaining funding from the feds may be connected to those having private flood insurance and of course many don't have it because it was not required as it wasn't in a flood zone.

Correct. Flood Insurance and Relief Funding are two different things.

If someone has Flood Insurance and are going to be compensated for home loss through insurance, it doesn't make sense to then turn around and compensate them for home loss through Relief Funding. Compensating them twice for the same loss.

And I'm talking strictly about home replacement compensation, NOT - relief funding used for living expenses like food, water and emergency shelter.

WW

 

[Loulit01]

I understand private home insurance and purchasing flood insurance if your home is in a designated flood zone. Many of the homes that flooded and that were washed away were not in a flood zone region that would have required having flood insurance. So I'm talking about federal relief funding. As I said, I've heard a report that obtaining funding from the feds may be connected to those having private flood insurance and of course many don't have it because it was not required as it wasn't in a flood zone.

You've heard a report.

Oy.

 

[Lovebug]

I can see the reticence for an insurer to cover a mobile home in places like Florida, though. No?

Absolutely. It took us by surprise at the time. Most of FL took us by surprise, but that's another story.

 

[Bodecea]

I can't speak to that, but my OP article makes it clear private insurers are bailing.

There's no free-market solution. These Floridians are going to become government dependents.

More than they already are?

 

[Chomsky]

More than they already are?

Bailing? Yeah. It's a continuously worsening process, it seems.

 

[longview]

For the National Flood Insurance program rates are set on individual properties (not zip codes) and are based on property value*** and as a function of flood risk. Flood risk is evaluated based on flood data. The higher the risk zone the higher the insurance.

*** Technically - IIRC - it's insured value as I think you can take out insurance for less that the full value. Someone can check and correct me on that.

WW

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Mostly I am speaking about regular homeowners insurance