Flood insurance in Houston

[TooManyWheels]

Originally Posted By: 3800Series
It will be rigged just like it was during Katrina. If you had flood insurance the damage was due to wind. If you have wind it was water, if it wasn't either it' flood damage in a area where you could not purchase flood insurance.

We lost our home during Katrina and they denied us. Kinda funny how houses where "destroyed" you could go to a block on the coast and on the same block insurance companies would say one was destroyed by water, one by wind, and one anything else they could think of.

It was funny to see them deny you saying your home was destroyed by wind damage since you didn't have it but your neighbors home destroyed because of flood damage which they did not have.

They will look for any out they can to deny as many people as possible. I know claims like this cost a lot and it can bankrupt a company but they where more then happy to take our payments for 30 years in a "high risk" area.


Not only all of this, which seems true from the anecdotes I've heard, but there are hundreds of cases against the flood insurance companies where they are welshing on well documented cases. Adjuster verifies the damage, independent appraisers verify the damage and amount, construction company repairs the damage within authorized parameters, insurance company doesn't pay.

I'm not quite as sure of the following but I believe it is also fairly common for the homeowner to take the insurance company to court, obtain a judgement, and the insurance company still doesn't pay.

 

[Panzerman]

If you have a mortgage, they require you to have flood insurance or they will buy it for you and tack it on your mortgage ( What you don't want because it's 3x as much).
The new FEMA maps came out in 2015. The 100 year flood plain. My house is out of the new flood maps plus our city just put a elaborate water control system in since so many houses got 4'-5' of water in them in 04 when four hurricanes went through. My house sits on high ground and even with all my neighbors in canoes circling my house my mailbox never went under water. I can stand on my pool deck naked and look down in their yards. I got out of my flood insurance but it took a act of God and letters from engineers and even the City.
Since then I paid off my mortgage but even if you have a equity line of credit every year they get on me, threaten me and I have to go through the whole process again.
I garrantee this mess is going to increase thier eagerness to force you to buy flood insurance. My aunt who lives in the water got 2' of water in her house from Mathew. She spent about $3000 to get it taken care of so it's not a house death sentence as long as you have some cash on hand.

 

[92saturnsl2]

I don't know about y'all, but these are all Americans suffering a catastrophe on an enormous scale, the city in question being the 4th largest in the US. Raise my taxes, do whatever, but I would rather see these people made whole at the expense of my paycheck, than to see a lot of folks down south homeless and suffering. I would hope the same if an earthquake hit Northern Kentucky and ruined my livelihood. We are all neighbors, separated as it might be, we are all Americans.

A lot of these people weren't told the flood risk, and even then, was it available? I don't care, ignorance or not, I'm still human and would cut $20 out of my paycheck in hopes that others would do the same.

 

[bioburner]

I just made my last tax payment for last year yesterday
I got the local F&R a new stethoscope so when I see my next years property tax statement they can tell if I am dead or not.
I lost my home to fire in 05 and I know the pain they are having in losing almost everything and the fight with insurance was even more painfull as they pulled the [censored] of dragging things out as a power play when your displaced and just want a home again.

 

[NormanBuntz]

Originally Posted By: fdcg27
Maybe property insurance in flood prone areas should be unavailable since the availability of insurance only promotes development in areas which shouldn't be developed.


If you believe this, does that mean the coastal areas should be barren of homes and businesses? That would be attractive for tourists who enjoy the beach. I guess they'd have to vacation in the mountains where (mostly) there's never a flood.

 

[jimbrewer]

I understand that they pretty much quit paying after Katrina.

There are reasons to have flood insurance without living in a flood zone. Runoff from a thunderstorm can do it anywhere.

 

[TooManyWheels]

Originally Posted By: csandste
I'm not sure how many thousand year floods the taxpayer is going to be able to pick the tab on. I'm sure Houston will have several more of these events in the next decade or so.



That's an important point that is often lost in discussions of risk from the natural world. Some risks are so big that they can not be spread, period. No matter how aggressively you try to distribute it onto others, the burden is simply too large compared to the number and potential bearing power of those who must absorb it. I think we are quickly nearing the point where our bad decisions are too much for us to compensate for, even collectively. They are eating us alive.

 

[AVB]

Originally Posted By: TX_1821
Originally Posted By: philipp10
Guys....the feds are not going to make anyone "whole". Look what happened in New Orleans. They won't, and should NOT pay for homes built where they never should of been built. A good chunk of Houston is built on drained swamps....and never should of been.


I want to get onto you as I have seen many loose their homes, some even family. (So yea it's a personal thing)
BUT Your Right...

Some insurance company I want to say State Farm or Allstate would NOT sell Flood Insurance in an area where a frind of mine was...
What do you know his house flooded a foot with Harvey.

If the insurance companies won't sell flood insurance at ANY cost, theres probably a good reason why.
There are areas here where people were not allowed to rebuild after the floods in 1994.

 

[Panzerman]

The houses around me that got 4'-5' of water in the four hurricanes in 04, the City bought them all up because they said the houses should have never been permitted so close to a Conservation area.
Good for me, no neighbors and now I have a huge meadow behind my house.
As far as raise my taxes to pay for problems. I am not on that boat.
First of all I don't approve of how they actually spend and Iam thinking about maybe 20% finds its way to intended purposes. second it's your responsibility to protect your wealth from whatever. Unless it's a Nuclear War you better access the risk and take measures. If these people and it sounds like this has had issues before need to research and prepare and take responsibility to protect their wealth. Taking from the ants to feed the grasshopper because he didn't know, doesn't float for me.
Donate money to the Red Cross if you want but don't volunteer me for tax increases.

 

[555]

My vision isn't improving with my age but I still like going to cities with skyscrapers and trying to see the name at the top. Is it a law firm? Nope. CPA's? Nope. Surgeons? Nope. Now what type of service or business could afford to build something so big and fancy? Hmmmmm. Maybe I'll buy a telescope so I can see the name at the top of those big buildings.
If you accept money to provide service, well then, you should provide that service. If you can't provide the service for when it is most needed, don't take the money.

 

[LoneRanger]

Originally Posted By: Panzerman
... I can stand on my pool deck naked and look down in their yards ...


This may explain why you're no longer invited to neighborhood block parties and HOA meetings, LoL !!!

 

[4WD]

Might add that areas known for oil & gas refineries tend to be coastal - even though domestic production has improved - it's a global market & not long ago it was all about importing via tankers - pass a few new laws and could be again - so have to be able to import crude and process near by. I still cringe to see places moving it by train ...

 

[3800Series]

Originally Posted By: TooManyWheels
Originally Posted By: csandste
I'm not sure how many thousand year floods the taxpayer is going to be able to pick the tab on. I'm sure Houston will have several more of these events in the next decade or so.



That's an important point that is often lost in discussions of risk from the natural world. Some risks are so big that they can not be spread, period. No matter how aggressively you try to distribute it onto others, the burden is simply too large compared to the number and potential bearing power of those who must absorb it. I think we are quickly nearing the point where our bad decisions are too much for us to compensate for, even collectively. They are eating us alive.


Very true, disaster can happen any where tho. The largest clusters of people live on coasts or very near to one. Then you have tornado allie, blizzards, large fires that happen yearly in California, you can have a flood or drought virtually any where as well. Natural disasters are natural and they happen every where.

It is the individuals choice to stay in a area that suffers from them more often but you can't avoid them.

Pros and Con really

My family line was one of the first settlers to my area. We owned a lot of this land here (both settler side and Native American). After going thru Katrina and virtually every other hurricane since the 1960's you either adapt and rebuild or move. The idea that you can avoid events like this is wrong tho.

You can go any place you like and you will deal with the same things one form or another. My heart really goes out to everyone in Texas that is effected by this. I know the feeling of losing everything not once but twice (3 times if you wanna count a house fire). It's a struggle but it's also a part of life.

 

[pandus13]

Originally Posted By: 3800Series
... My heart really goes out to everyone in Texas that is effected by this. I know the feeling of losing everything not once but twice (3 times if you wanna count a house fire). It's a struggle but it's also a part of life.

3800Series,

based on your past experiences,
can you come up with a guide for the people to put themselfs back on their feet (or some feet)?

Thank you

respectfully,
pandus13/Tony

 

[3800Series]

Not really much to say honestly. Camille was the first real one I experienced, I was young and didn't so much effect me financial at that age but my parents. It was a hard time for them. Seemed like it was all they could do to finally get the home. Father was a full time Carpenter... Getting side tracked I guess.

I was a middle child and probably about 12 when it hit. Close family did all they could to help us at the time.

Katrina .. I honestly didn't expect to much. Not to sound ignorant but they had a tendency to play up every hurricane that comes the way. During the event while our house wasn't bad my best friend owned a company that was very successful. He invested heavily in a "hurricane proof" home. Solid block poured filled and reinforced.

We lived about two mile away (granted he lived at the top of a hill). He came out pretty well with just a tree on the garage. He insisted we stay with him during the event and in all honesty if it wasn't for my middle son staying with me I probably have just stayed home.

The river behind the house (very, very, small river dug down about 15 feet below ground level) flooded over. Wind took the roof and the rest just collapsed. Son took it pretty well and I was happy he was safe. Hated myself for awhile just thinking how I nearly put him in danger by wanting to stay there.

Told myself he was the main priority and drove him to Jackson MS to catch a flight to Iowa to stay with his mother and I made my way back.

In general everything that was lost can be replaced. Be thankful for the family you have and your safety. I'm not really one to prize possession but something about seeing your life's worth of effort gone can hit you a little hard.

Power will probably be out for awhile. I know it took us 3 week after Katrina. I hate to say what I'm about to because I genuinely care for the quality of life for others but you're going to need to hoard what you can. I'm not saying buy the last 8 cases of water but stuff like gas will be rationed. Get what you can when you can.

We had a lot of "religious originations" come and help how they can with food and some with FEMA trailers. Help your neighbors look out for others around you. If you have elderly folks near you make sure they are OK and have basic needs.

Take life one step at a time you will feel overwhelmed with it all. It will take time to move on from family items, photos, and what not. Even after losing the house the one thing I miss the most was a ring my father gave to me when I was 16. Wasn't worth much he didn't have much but he gave it to me the day I moved out.

I wanted to give it to my oldest son when he hit 16. He was always very responsible and I knew he wouldn't lose it or sell it. It just small stuff like that really. Also don't put family at risk if you have children and you can have them stay somewhere for the time being please do it.

We had a lot of break ins after Katrina. Not worth it to put loved ones at risk if you don't have too.

 

[Coprolite]

Flood insurance outside the flood plain is $450/yr. - only available via the Federally backed plan. many places flooded now have never flooded before. I didn't renew my flood insurance after a 2015 storm dumped an immense amount of rain in under 2 hours and our home was fine. My house was easily 5 vertical feet over flood stage. I will measure exact amount later.

I don't blame people for not having flood insurance when not in a flood plain. Would you shell out $450 a year to protect against an 800 or 1000 year flood?

Someone posted in another place that flood insurance covers water from below and homeowners covers from above. The dicey part is when you have both but not both coverages.

Thankfully, my wind damage is covered but my deductible is probably too high. I got the hole tarped over quickly enough to avoid losing ceilings and floors. I will be pricing out lower deductibles next year, but I can't complain. Sometimes when you play the percentages, you have to be ready to cover the spread with the money saved or more...

Just because my house is the only one to have been hit/damaged by a microburst in my immediate area doesn't make me a victim, the others were just luckier than me. I never had to fret over the water rising while people nearby were marking spots on their driveway....

 

[Brons2]

I have a family member who lives in Houston and bought flood insurance even though not in a flood plain. She did not flood during Harvey but is glad that her premiums will help others. If I lived in Houston, I would buy it too no matter where I lived.

On a side note, she could not get out of her neighborhood during the height of the flooding, so it wasn't far...

 

[Jarlaxle]

Originally Posted By: NormanBuntz
Originally Posted By: fdcg27
Maybe property insurance in flood prone areas should be unavailable since the availability of insurance only promotes development in areas which shouldn't be developed.


If you believe this, does that mean the coastal areas should be barren of homes and businesses? That would be attractive for tourists who enjoy the beach. I guess they'd have to vacation in the mountains where (mostly) there's never a flood.


If you cannot get insurance, that should be your FIRST clue that you should not build there.

 

[Panzerman]

Even with insurance during a hurricane your deductible isn't the same. Example my deductible is $1000 but if it's damage during a hurricane it goes to 2.5% of the property value on a $250,000 house your looking at $6000 deductible now. So on top of all your other damage you got to come up with $6000 plus if you lost cars etc... Can't say I feel a bit bad if insurance companies have to pay out. They set themselves up nicely.