We are near the coast and the transition is going to be tough for a lot of people who bought seaside homes assuming that carrying costs would be a certain amount.
But in the long run, having rates match the risk only makes sense. Undoing any government program is painful addiction withdrawal for those who learn to count on these artificial programs.
Tier 1 & 2 have to be a tough area to live in due to TWIA and no real market assuming risk there. Add to it the flood threat and rates are very high. I am glad I am not an agent in that area having to deal with all those problems. It is tough enough without that burden.
I tell my coastal customers all of the time that their windstorm and flood rates aren’t sound and will eventually increase. Chickens are finally set to come home to roost on both fronts, at least in Florida.
The problem I forsee happening is people might just stop carrying flood insurance. There already is a negitive stima out there with many insured’s that the insurance industry is full of crooks that just want to take their money and run. You can show them all the stats that back up the insurance industry’s claim that “Flood insurance rates are much to low” but they won’t accept it. They will just see it as validation of their already biased view on the insurance industry.
There are some people out there who still think their HO will cover anything and everything even though the companies state on their policies will not cover flood or rising waters. It is hard to sell flood because the premiums are often about as high as the HO policy. If we quote one and they reject it, we document our file about the rejection. That is about the only way to prevent E&O if they have a problem.
Flood insurance has never made sense to me. It should be mandatory on all properties and simply rated correctly. This would prevent a lot of problems (and a lot of coverage disputes/suits). In the end, FEMA (“the U.S. taxpayer”) picks up the tab. Too bad we can’t seem to get anyone who knows anything about insurance to sort all of this out in the U.S. Congress.
All Congress knows about is entitlements and how to spend our taxpayer money and money they don’t have. There are hundreds of programs including NFIP which need to go if the budget is ever going to be brought into line. The Progressive Liberal mentality is one of taxing and spending. That has to stop if this country is ever to get back on track.
The NFIP does not add to the debt. it is off balance sheet line item. This is because it operates (falsely) under the premise that it will have good and bad years but be financially sound. The reason we have this public option is the Bankers and corporations need it to secure their loans.
It is past time for reform of NFIP. This has been a drain on our economy along with dozens of other subsidized programs threatening our economy.
We are near the coast and the transition is going to be tough for a lot of people who bought seaside homes assuming that carrying costs would be a certain amount.
But in the long run, having rates match the risk only makes sense. Undoing any government program is painful addiction withdrawal for those who learn to count on these artificial programs.
Tier 1 & 2 have to be a tough area to live in due to TWIA and no real market assuming risk there. Add to it the flood threat and rates are very high. I am glad I am not an agent in that area having to deal with all those problems. It is tough enough without that burden.
I tell my coastal customers all of the time that their windstorm and flood rates aren’t sound and will eventually increase. Chickens are finally set to come home to roost on both fronts, at least in Florida.
The problem I forsee happening is people might just stop carrying flood insurance. There already is a negitive stima out there with many insured’s that the insurance industry is full of crooks that just want to take their money and run. You can show them all the stats that back up the insurance industry’s claim that “Flood insurance rates are much to low” but they won’t accept it. They will just see it as validation of their already biased view on the insurance industry.
There are some people out there who still think their HO will cover anything and everything even though the companies state on their policies will not cover flood or rising waters. It is hard to sell flood because the premiums are often about as high as the HO policy. If we quote one and they reject it, we document our file about the rejection. That is about the only way to prevent E&O if they have a problem.
Flood insurance has never made sense to me. It should be mandatory on all properties and simply rated correctly. This would prevent a lot of problems (and a lot of coverage disputes/suits). In the end, FEMA (“the U.S. taxpayer”) picks up the tab. Too bad we can’t seem to get anyone who knows anything about insurance to sort all of this out in the U.S. Congress.
All Congress knows about is entitlements and how to spend our taxpayer money and money they don’t have. There are hundreds of programs including NFIP which need to go if the budget is ever going to be brought into line. The Progressive Liberal mentality is one of taxing and spending. That has to stop if this country is ever to get back on track.
Funny, I recall the 11 tax increases And the biggest percentage increase in national debt ever under Reagan.
And “It was standard practice not to pay for things.” (Orrin Hatch, on Republican fiscal discipline during the Bush presidency, December 2009)
The NFIP does not add to the debt. it is off balance sheet line item. This is because it operates (falsely) under the premise that it will have good and bad years but be financially sound. The reason we have this public option is the Bankers and corporations need it to secure their loans.