If National Flood Insurance participants feel that the premiums are too high, what is stopping them from creating their own private insurer to write the risk at lower cost? If inadequate initial capitalizaton is available, an assessment mutual model would be appropriate.
The problems lies with the people who did what the government told them was needed to meet the flood guidelines. The government then came back and said they made a mistake, the eleveation realy needs to be 12″ inches higher. Sorry about the mistake…. but we don’t want to subsidize the federal flood program anymore, so you premium is now going to be $15,000.00 a year.
I don’t have a problem with people paying their fare share, but when they change the rules after you have made the investment it doesn’t seem quite right. Not only will the flood insurance go up dramatically, the value of the property will suffer signifantly. I guess they don’t sell an insurance policy for the risk of getting screwed by a government error.
The market values of the coastal homes with high flood premiums will drop significantly. This will lead to a new wave of homeowners grieving their taxes. They’ll win the grievance and see their property and school taxes reduced. In the end, money that was going to support their local police, fire and schools, will be heading to FEMA. Shouldn’t take long before the local villages and counties figure this out and start screaming.
If National Flood Insurance participants feel that the premiums are too high, what is stopping them from creating their own private insurer to write the risk at lower cost? If inadequate initial capitalizaton is available, an assessment mutual model would be appropriate.
The problems lies with the people who did what the government told them was needed to meet the flood guidelines. The government then came back and said they made a mistake, the eleveation realy needs to be 12″ inches higher. Sorry about the mistake…. but we don’t want to subsidize the federal flood program anymore, so you premium is now going to be $15,000.00 a year.
I don’t have a problem with people paying their fare share, but when they change the rules after you have made the investment it doesn’t seem quite right. Not only will the flood insurance go up dramatically, the value of the property will suffer signifantly. I guess they don’t sell an insurance policy for the risk of getting screwed by a government error.
Another oversight during the Obama Administrations’ watch!
The market values of the coastal homes with high flood premiums will drop significantly. This will lead to a new wave of homeowners grieving their taxes. They’ll win the grievance and see their property and school taxes reduced. In the end, money that was going to support their local police, fire and schools, will be heading to FEMA. Shouldn’t take long before the local villages and counties figure this out and start screaming.