It’s great that George will veto this stupid legislation.
Now the next step is to phase out the federal flood program over the next few years, and have the private sector take it over. (and the federal crop insurance program, also)
no level of government should be selling insurance.
I mostly agree with you, although I think that phasing out flood insurance would be nearly impossible because it’s so entrenched.
Crop insurance is the biggest joke. It used to be a necessity, but with agri-business running the show it’s basically become a government kickback to the agriculture lobbies. There may be some smalltime farmers who truly need the help, but they’re in the VERY small minority.
Well if they want to Pass something like that, for the folks that want to live on the coast. How about throwing in some earthquake cover for all of California. Or just get out of the insurance business altogether.
What President Bush doesn’t seem to understand is that the private sector does not and is not including wind coverage in most coastal areas. States through their wind pool coverage are picking up this coverage. Like anything else, if the rates are calculated properly, it doesn’t matter who provides the coverage. The difference is that the private sector has to make a profit. The government doesn’t.
No taxes. No government. No exorbitant salaries for the so-called leaders of the populace. No order. Chaos. Iraq USA, OUR NEXT STAR ON THE FLAG! Katrina and the insurance companies: what came first, the water or the wind? Insurance Companies and ourselves are in business for a profit. But FEMA and State Farm, Allstate, etc., have put a blackeye on us all. What belongs to the stream of commerce and what does not? Vote, Vote, Vote.
Having been in the business on both sides i.e. wind and flood, I do believe the changes to the NFIP are drastically needed, HOWEVER, I do not believe that the government should take on wind under any condition, the effect on the carriers will end up being a mess, and unfortunately, will increase litigation claims instead of lowering them, our flood mapping must be changed as there are too many floods happening every day in areas that have never flooded or it’s been years since a flood occured. It’s largely due to the building going on which can’t be helped either. We grow & grow and the effects are evident.
They didnt write FLOOD policies it simply wasnt excluded from Homeowners policies. NFIP was formed because carriers began excluding “rising water” ie. floods from standard homeowners policies.
I lost everything…but I dont believe the US Govt should be in the wind ins business…Flood is a different matter… its the INSURANCE companies that since the late 60’s bailed on this type of insurance and left the feds no choice.
As for WIND… like I said I dont support this measure>>>>HOWEVER… if companies continue to REFUSE to write wind policies at ANY rate what is the alternative. State Wind Pools… i am not sure that is a viable longterm answer either. I know I dont have the answer to the problem… but you cant have it both ways… i.e. the insurance companies saying the feds shouldnt include wind insurance then having MOST companies unwilling to write wind policies in certain areas…. somebody has to write it…..
“Historically, people at risk from flooding could only hope for help from their neighbors and charitable organizations in the event of a flood. Government assistance varied from community to community, and flood insurance was scarce. During the 1920s, the insurance industry concluded that flood insurance could not be a profitable venture because the only people who would want flood coverage would be those who lived in floodplains. Since they were sure to be flooded, the rates would be too high to attract customers. During the 1960s, Congress became concerned with problems related to the traditional methods of dealing with floods and flood damage—construction of structural projects and federal disaster assistance. Both were proving to be quite expensive, with no end in sight.
Congress concluded that:
¨ Although Federal flood programs were funded by all taxpayers, they primarily helped only residents of floodplains.
¨ Flood protection structures were expensive and could not protect everyone.
¨ People continued to build and live in floodplains, thus still risking disaster.
¨ Disaster relief was both inadequate and expensive.
¨ The private insurance industry could not sell affordable flood insurance because only those at high risk would buy it.
In 1968, Congress passed the National Flood Insurance Act to correct some of the shortcomings of the traditional flood control and flood relief programs. The act created the National Flood Insurance Program (NFIP) to:
¨ Transfer the costs of private property flood losses from the taxpayers to floodplain property owners through flood insurance premiums.
Provide floodplain residents and property owners with financial aid after floods, especially smaller floods that do not warrant federal disaster aid.
¨ Guide development away from flood hazard areas.
¨ Require that new and substantially improved buildings be constructed in ways that would minimize or prevent damage in a flood.”
I have to say that some drastic changes are needed as well. Unless you have lived or worked in the areas hardest hit by catastophe you may not understand the significance of what has happened. “Claims Adjuster” is correct in speaking that flooding in the last several years is not just on the “coastal” side and flood maps do need to be updated and some areas have been. It is in areas that were in “preferred or low hazard flood zones”. These were not areas that were required by a mortgage company to carry flood insurance but if they are required now it will cost them. I do feel for the people of the areas that do not have the means to rebuild. These are not only the low income but a heck of lot of middle class and upper middle class. The price we are all paying has been a strain on everyones budget. Some of the lower income families have 2 working adults making minimum wage that are literally living from paycheck to paycheck. Has anyone reading this email ever tried to manage a family budget on $13152 a year or if 2 people are $26304? Not all these people apply for government assistance-although they should. Some of them have 2 or 3 jobs and don’t have time to sit and think about these issues. Some of these people are the elderly who have homes that have been paid for and they are now living on a meager social security check and maybe retirement money. Will any of these people be receiving raises or going to work as a CEO anytime soon? No. Where would you start with this type of budget-how much can they set aside of their finances for the proper insurance or the cost of starting over “if” there is another catastrophe. If the free market is working why are the prices ballooning and people losing there homes and are unable to afford protecting their assests even if the assests to you and me seem very little. I would like to know what other company is writing wind insurance in the wind pool area as the only market we can find is Citizens. Where are all those companies that are pro free market and their wind coverage? We need competition in this arena badly. Hello!!! Anybody who knows where the competition is-please respond to this email. Oh and it should be a company that writes in Florida.
Government run insurance. After years in the flood insurance business they have managed to go into debt 17 billion dollars. This should be a warning to everyone what will happen when the Federal Government takes over health care.
Flood may have gone into debt but apparently so has the “free market” system as I did not see a whole lot of home insurance carriers willing to pay out on any claims during some of these disasters as they exclude flood coverage and everything was flood related according to them (what a great way to make a profit lay it on the federal governments feet)yet the big carriers say that they are financialy unstable and can not afford to write insurance in Florida or other coastal states. FEMA paying out flood losses during a natural disaster!!!-at least the people could count on them to make an effort during “very stressful time” instead of the insurance companies only looking at their bottom line and fighting them tooth and nail for any bit of relief. National Healthcare will probably bring relief to many people but if you have a substantial paycheck you may have lost touch.
Capitol Kim in the house!
It’s great that George will veto this stupid legislation.
Now the next step is to phase out the federal flood program over the next few years, and have the private sector take it over. (and the federal crop insurance program, also)
no level of government should be selling insurance.
I mostly agree with you, although I think that phasing out flood insurance would be nearly impossible because it’s so entrenched.
Crop insurance is the biggest joke. It used to be a necessity, but with agri-business running the show it’s basically become a government kickback to the agriculture lobbies. There may be some smalltime farmers who truly need the help, but they’re in the VERY small minority.
Well if they want to Pass something like that, for the folks that want to live on the coast. How about throwing in some earthquake cover for all of California. Or just get out of the insurance business altogether.
What President Bush doesn’t seem to understand is that the private sector does not and is not including wind coverage in most coastal areas. States through their wind pool coverage are picking up this coverage. Like anything else, if the rates are calculated properly, it doesn’t matter who provides the coverage. The difference is that the private sector has to make a profit. The government doesn’t.
You are certainly correct Gene. Government is there to lose money.
Government these days exists to spend our money. They don’t seem to recognize it’s our money, not theirs.
No taxes. No government. No exorbitant salaries for the so-called leaders of the populace. No order. Chaos. Iraq USA, OUR NEXT STAR ON THE FLAG! Katrina and the insurance companies: what came first, the water or the wind? Insurance Companies and ourselves are in business for a profit. But FEMA and State Farm, Allstate, etc., have put a blackeye on us all. What belongs to the stream of commerce and what does not? Vote, Vote, Vote.
Will,
You say it’s the insurance industry’s fault for bailing on flood coverage in the ’60s.
Name for me the insurers that wrote flood coverage prior to the formation of the NFIP.
Now explain to me why the government should provide insurance simply because the private sector won’t.
Having been in the business on both sides i.e. wind and flood, I do believe the changes to the NFIP are drastically needed, HOWEVER, I do not believe that the government should take on wind under any condition, the effect on the carriers will end up being a mess, and unfortunately, will increase litigation claims instead of lowering them, our flood mapping must be changed as there are too many floods happening every day in areas that have never flooded or it’s been years since a flood occured. It’s largely due to the building going on which can’t be helped either. We grow & grow and the effects are evident.
They didnt write FLOOD policies it simply wasnt excluded from Homeowners policies. NFIP was formed because carriers began excluding “rising water” ie. floods from standard homeowners policies.
I lost everything…but I dont believe the US Govt should be in the wind ins business…Flood is a different matter… its the INSURANCE companies that since the late 60’s bailed on this type of insurance and left the feds no choice.
As for WIND… like I said I dont support this measure>>>>HOWEVER… if companies continue to REFUSE to write wind policies at ANY rate what is the alternative. State Wind Pools… i am not sure that is a viable longterm answer either. I know I dont have the answer to the problem… but you cant have it both ways… i.e. the insurance companies saying the feds shouldnt include wind insurance then having MOST companies unwilling to write wind policies in certain areas…. somebody has to write it…..
WRONG!!! Go learn something…
http://www.floods.org/Certification/is9/unit2.pdf
“Historically, people at risk from flooding could only hope for help from their neighbors and charitable organizations in the event of a flood. Government assistance varied from community to community, and flood insurance was scarce. During the 1920s, the insurance industry concluded that flood insurance could not be a profitable venture because the only people who would want flood coverage would be those who lived in floodplains. Since they were sure to be flooded, the rates would be too high to attract customers. During the 1960s, Congress became concerned with problems related to the traditional methods of dealing with floods and flood damage—construction of structural projects and federal disaster assistance. Both were proving to be quite expensive, with no end in sight.
Congress concluded that:
¨ Although Federal flood programs were funded by all taxpayers, they primarily helped only residents of floodplains.
¨ Flood protection structures were expensive and could not protect everyone.
¨ People continued to build and live in floodplains, thus still risking disaster.
¨ Disaster relief was both inadequate and expensive.
¨ The private insurance industry could not sell affordable flood insurance because only those at high risk would buy it.
In 1968, Congress passed the National Flood Insurance Act to correct some of the shortcomings of the traditional flood control and flood relief programs. The act created the National Flood Insurance Program (NFIP) to:
¨ Transfer the costs of private property flood losses from the taxpayers to floodplain property owners through flood insurance premiums.
Provide floodplain residents and property owners with financial aid after floods, especially smaller floods that do not warrant federal disaster aid.
¨ Guide development away from flood hazard areas.
¨ Require that new and substantially improved buildings be constructed in ways that would minimize or prevent damage in a flood.”
I have to say that some drastic changes are needed as well. Unless you have lived or worked in the areas hardest hit by catastophe you may not understand the significance of what has happened. “Claims Adjuster” is correct in speaking that flooding in the last several years is not just on the “coastal” side and flood maps do need to be updated and some areas have been. It is in areas that were in “preferred or low hazard flood zones”. These were not areas that were required by a mortgage company to carry flood insurance but if they are required now it will cost them. I do feel for the people of the areas that do not have the means to rebuild. These are not only the low income but a heck of lot of middle class and upper middle class. The price we are all paying has been a strain on everyones budget. Some of the lower income families have 2 working adults making minimum wage that are literally living from paycheck to paycheck. Has anyone reading this email ever tried to manage a family budget on $13152 a year or if 2 people are $26304? Not all these people apply for government assistance-although they should. Some of them have 2 or 3 jobs and don’t have time to sit and think about these issues. Some of these people are the elderly who have homes that have been paid for and they are now living on a meager social security check and maybe retirement money. Will any of these people be receiving raises or going to work as a CEO anytime soon? No. Where would you start with this type of budget-how much can they set aside of their finances for the proper insurance or the cost of starting over “if” there is another catastrophe. If the free market is working why are the prices ballooning and people losing there homes and are unable to afford protecting their assests even if the assests to you and me seem very little. I would like to know what other company is writing wind insurance in the wind pool area as the only market we can find is Citizens. Where are all those companies that are pro free market and their wind coverage? We need competition in this arena badly. Hello!!! Anybody who knows where the competition is-please respond to this email. Oh and it should be a company that writes in Florida.
Government run insurance. After years in the flood insurance business they have managed to go into debt 17 billion dollars. This should be a warning to everyone what will happen when the Federal Government takes over health care.
Flood may have gone into debt but apparently so has the “free market” system as I did not see a whole lot of home insurance carriers willing to pay out on any claims during some of these disasters as they exclude flood coverage and everything was flood related according to them (what a great way to make a profit lay it on the federal governments feet)yet the big carriers say that they are financialy unstable and can not afford to write insurance in Florida or other coastal states. FEMA paying out flood losses during a natural disaster!!!-at least the people could count on them to make an effort during “very stressful time” instead of the insurance companies only looking at their bottom line and fighting them tooth and nail for any bit of relief. National Healthcare will probably bring relief to many people but if you have a substantial paycheck you may have lost touch.