I don’t disagree with any of the preceding comments, and agree (and know) that the majority of flood losses and payments take place in other than Special Flood Hazard Zones. From what I see in litigation, most people don’t buy flood coverage because their agents don’t even mention it or its availability, and don’t tell people the hazards associated with the zone they’re in. Agents also don’ quote premiums. How do you expect people to buy a coverage (a) they don’t know about, (b) they hazard hasn’t been made known to them, and (c) the costs have not been made known?
If FEMA would quit handing out checks to the uninsured, more people would buy policies to protect themselves. As long as all they have to do is hold their hand out to the federal government, why bother with personal responsibility!
Great comment KWA and as a claims professional I concur 100%. America has developed a culture of dependency on the Federal government that fosters ignorance and irresponsibility. Without a consequence, behavior won’t change. Anyone smart enough to own a home should know he/she needs to protect it. Agents and banks tell them about insurance but they’re too stupid or cheap to buy the policies. (that are quite affordable). They shouldn’t be paid and rewarded for their poor judgement. It’s an insult to those who protected themselves and their property by purshasing coverage.
First of all, stop letting people build in the 1, 5, 25, and 100 year flood zones. If they do, they should not be eligible to buy flood insurance and not be eligible for claims payment after a flood.
To much development in these areas makes the problem worse.
Continue the FEMA policy of not allowing rebuilding in those areas, once flooded out, stay out.
I’m afraid the problem is not that simple. Where does one draw the line on maps that are constantly changing? Furthermore, I’m willing to bet that far more damage has been done in moderate risk zones (B, C, X, X*) than in special flood hazard areas this past week. Should all areas flood out (whole cities in some cases) no longer be eligible? Soon we would have more ineligible areas than eligible, making the program even harder to keep financially sound.
I believe that FEMA is on the right track by tightening down on repeat offenders, but perhaps the rules aren’t stringent enough yet. Rates and coverage limits also need to be addressed. More premium needs to be generated without making individual policies ridiculously expensive.
The two times I’ve bought a house both my realtor and my insurance agent told me I did not need flood insurance. I know what they meant was that I didn’t need flood insurance to finance the house, but that isn’t what they said. Agents must do a better job of explaining the risks to their insureds. Educating the local real estate agent population would help too – since so many people factor in what a realtor says when considering what to buy and what to ask their insurance agent.
I don’t disagree with any of the preceding comments, and agree (and know) that the majority of flood losses and payments take place in other than Special Flood Hazard Zones. From what I see in litigation, most people don’t buy flood coverage because their agents don’t even mention it or its availability, and don’t tell people the hazards associated with the zone they’re in. Agents also don’ quote premiums. How do you expect people to buy a coverage (a) they don’t know about, (b) they hazard hasn’t been made known to them, and (c) the costs have not been made known?
If FEMA would quit handing out checks to the uninsured, more people would buy policies to protect themselves. As long as all they have to do is hold their hand out to the federal government, why bother with personal responsibility!
Great comment KWA and as a claims professional I concur 100%. America has developed a culture of dependency on the Federal government that fosters ignorance and irresponsibility. Without a consequence, behavior won’t change. Anyone smart enough to own a home should know he/she needs to protect it. Agents and banks tell them about insurance but they’re too stupid or cheap to buy the policies. (that are quite affordable). They shouldn’t be paid and rewarded for their poor judgement. It’s an insult to those who protected themselves and their property by purshasing coverage.
First of all, stop letting people build in the 1, 5, 25, and 100 year flood zones. If they do, they should not be eligible to buy flood insurance and not be eligible for claims payment after a flood.
To much development in these areas makes the problem worse.
Continue the FEMA policy of not allowing rebuilding in those areas, once flooded out, stay out.
I’m afraid the problem is not that simple. Where does one draw the line on maps that are constantly changing? Furthermore, I’m willing to bet that far more damage has been done in moderate risk zones (B, C, X, X*) than in special flood hazard areas this past week. Should all areas flood out (whole cities in some cases) no longer be eligible? Soon we would have more ineligible areas than eligible, making the program even harder to keep financially sound.
I believe that FEMA is on the right track by tightening down on repeat offenders, but perhaps the rules aren’t stringent enough yet. Rates and coverage limits also need to be addressed. More premium needs to be generated without making individual policies ridiculously expensive.
I was just looking at MyNewMarkets.com and noticed a series of articles on flood insurance is beginning today.
Today’s article gives some interesting information gives some information on the rates and history of flood legislation.
The two times I’ve bought a house both my realtor and my insurance agent told me I did not need flood insurance. I know what they meant was that I didn’t need flood insurance to finance the house, but that isn’t what they said. Agents must do a better job of explaining the risks to their insureds. Educating the local real estate agent population would help too – since so many people factor in what a realtor says when considering what to buy and what to ask their insurance agent.
those w/o flood ins based on 1,004 peeps – hmmm