Mortgages companys will start requiring flood insurance

[Freedom_Aflaim]

For folks who arent even in flood planes now.

Watch. All new mortages for homes in huricanes areas will be required to have flood as well as home owners as a requirement. No flood insurance? No loan.

The natural, and perhaps only option for former home-owners who lost their house in Katrina will be to default on their mortages. After all, why pay on vacant land?

Their'll be thousands and thousands of foreclosures as a result, and the mortgages industry will respond by requiring flood insurance on all homes, even those not in a flood plane.

[Sherman A1]

1. Perhaps they could come up

with new lines of insurance as well, Wind driven water insurance, Nice Day insurance, Your House has been blown into the next county insurance, Your neighbor's house has taken out 3/4's of your home insurance, We have a President who can't find his plate with his fork so FEMA isn't coming insurance, It's Tuesday insurance.... Gee, the possibilities are endless.

[OPERATIONMINDCRIME]

2. Well, I'm Already Forced To Pay 1700 Bucks A Year For Flood Insurance, So

oh well.

[Freedom_Aflaim]

5. Well yea but Im talking about folks not in a flood plane

I've never paid a nickle in flood insurance because I've never lived in a flood zone.

However I do live in a hurricane risk area, albeit at a high elevation.

I suspect that within a few years (or less), now I'll be required to have flood insurance at my next refi or home purchase because of this stupid decision that nullifys a large portion of home owners insurance protection.

[LA lady]

6. Me too

I understand the rationale.

[slackmaster]

7. My homeowner's policy covers flooding as well

But the flood premium is supposedly based on the actual flood risk of my locale.

It's a lot less than what you are paying, but still IMO way above what my actual risk would entail. I live on a steep street and have excellent drainage. I'm probably more prone to liquefaction during an earthquake because of the 30 feet of fill I'm sitting on top of.

:scared:

[Freedom_Aflaim]

10. How does that compare you your home owners insurance?

$1700 bucks seems like alot for just one risk.

[OPERATIONMINDCRIME]

11. We Pay Only $790 I Think For The Homeowners.

Flood insurance sucks.

[slackmaster]

3. The alternative would be to only assess people in flood zones...

...for what their actual risk costs. The result would be concentrations of foreclosures in flood-prone areas. It is common practice in the insurance industry to spread premiums charged for risks in limited areas out among the broader population.

I've long had an interest in flood risk, because in my city (San Diego) there has been way too much development in places that are obviously subject to major flooding. Should I have to pay for the risks taken by people who are either too foolish to know better or too poor to afford to live in a safer place? The answer is not always simple.

[pitohui]

4. as they probably should

many houses that suffer flood damage are not in a flood plain or in a flood zone


my neighborhood is zone c, not a flood zone, so i was exempted from buying flood insurance, but both next door neighbors have flooded since that designation and some houses nearby on this street have flooded more than once

my dad's house at the top of a hill, hell, it once flooded because of some long drawn-out story about a wrongly installed hot water heater!

don't believe any lying son of a bitch insurance agent who doesn't want to sell you flood insurance, it's cheap because it's a national program, trouble is that it doesn't bring in any money for the insurance company or agent

[Freedom_Aflaim]

9. Is it really cheap?

I keep hearing thats its pretty damn expensive.

Someone up earlier in thread mentioned something like $1700 a year, which is double or more that of home owners ins. I know that is just one data point though.

I guess my point is that if HO insurance companys get to weasel out of paying, the hit will be it'll just make buying a home that much more difficult for everyone.

[whistle]

8. They must know something about global warming that the rest of us don't

[blues90]

12. What's next ?

Global warming insurance ?

[Jazzgirl]

13. Thanks for posting this.

This explains the letter I got from my insurance company last week urging me to buy floor insurance even though I don't live in a flood plain. That pisses me off. I can only imagine what the premium will go up to. :mad: :mad: :mad:

[onethatcares]

14. thank you, I got the same letter

and at the bottom there was a disclaimer that you had to sign for not signing up for it. I live in a house that's 52 ft above sea level, 7 miles from either body of water that could flood, I have an 18 inch above grade foundation, but the house was built in 1926, moved to it's present location in 1952 and has suffered zero flood damage in all that time. It's (the insurers bullshit) is just another way out of paying for anything.