Flood insurance in Houston

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I am reading that 80% of the homeowners do not have flood insurance. Normal homeowner's insurance will not cover flood damage. I am sure the federal will help but the cost will be huge.

I was told one insurance company so far is getting a lot of municipal claims so far.
 
Even if you have flood insurance, there are weird rules in place like if a tree knocked out a window or poked a hole in the house and water entered the hole even though the house would have flooded anyways.
 
Are we looking at another govt bailout of the insurance companies? The TX insurance commissioner may push the companies to cover the damages as part of a deal.
 
If insurance companies have to divest substantially from the stock market to pay claims it might make a good buying opportunity for others.
 
Its going to be tricky and I am sure that thousands of claims will be tied up in the courts for years to come.
 
I heard this on NPR too.
Is there any private market for flood insurance?
FWIU, the only available flood insurance is through a federal scheme that isn't available to everyone everywhere.
Some of the areas inundated in this event would not have qualified.
In any event, the federal government will make these people whole with dollars funneled through FEMA.
Whether we should or not as well as whether the federal government should reinsure risk that is commercially uninsurable is another matter.
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.
 
Originally Posted By: Mr Nice
If you have a mortgage... isn't flood insurance required ?


Only if you're in a flood zone.
 
Originally Posted By: SatinSilver
Originally Posted By: Mr Nice
If you have a mortgage... isn't flood insurance required ?


Only if you're in a flood zone.


Right, and a flood zone is an area that's seen flooding in the past fifty years or so.
Those living in areas not known to flood who have suffered serious flood damage are in a difficult position.
Their homeowner's won't cover the loss but whatever entity owns their mortgage will still require payments each month.
Probable federal government bailout for these folks.
Neither right nor wrong, just a measure to be used in what are desperate times in a populous region.
 
I know a guy who was offered 50/50 cost to raise house - and then insurance was lowered to non flood prone rate - it was expensive but a really nice home and paid for ...
 
In reading today one of the things the federal government offers is SBA loans to plain homeowners, not businesses. You pay it back at low interest rates.
 
Originally Posted By: Reddy45
Are we looking at another govt bailout of the insurance companies? The TX insurance commissioner may push the companies to cover the damages as part of a deal.


The situation will be handled like this guys!!!!!

Please WATCH
https://www.youtube.com/watch?v=wz-PtEJEaqY

lol.gif
lol.gif
lol.gif
 
Originally Posted By: Reddy45
Are we looking at another govt bailout of the insurance companies? The TX insurance commissioner may push the companies to cover the damages as part of a deal.


There will certainly be a lot of claims, but most casualty insurance companies have reinsurance. They pay a few billion dollars and the reinsurance company pays the rest.
 
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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.
 
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.
 
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.
 
Originally Posted By: TX_1821
Originally Posted By: Reddy45
Are we looking at another govt bailout of the insurance companies? The TX insurance commissioner may push the companies to cover the damages as part of a deal.


The situation will be handled like this guys!!!!!

Please WATCH
https://www.youtube.com/watch?v=wz-PtEJEaqY

lol.gif
lol.gif
lol.gif



I like the kazoo.

But seriously it does suck that Houston got flooded. I live in a tornado prone area and live with the fear/anticipation that an F5 will come through and take everything away (including my dear oil stash).
 
As far as I know, there is only the federal backed flood insurance program here in Texas and it already owes the federal government like 20 billion plus for past disasters. Premiums are not high enough to reflect the risk. The government doesnt want to shut it down because the home builder lobby is powerful and its popular with people around because well who doesnt want subsidized insurance. Congress needs to step up and act like the adult in the room and end the insurance program. Then people wont be able to build homes in the flood prone areas or buy homes in these areas unless they are going to pay cash.

The neighbors across the street have a family living with them temporarily whose home was flooded. Their house flooded previously either last year or the year before. The first time around they didnt have the insurance but bought it after. So here they go again repeating the cycle. Now there are areas here in Houston that arent in the flood plain that still did get flood waters in their home just because it was so much more than what has been previously experienced. I do feel bad for those people.
 
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.


The insurance companies basically lost their shirt the last time they offered flood insurance so they got out of that market and now it's just the federal government that offers it. Also they redraw the flood maps every 10 years or so. That means areas that weren't in a flood zone may end up in a flood zone so it's not as if people purposely built in a flood zone. Plays havoc in the housing market because someone who didn't require flood insurance before is now forced to buy it.

Also even though it may cost an extra 1k or more a year, if you pay for it for 30 years, they only end up with 30k. With a flood, their max exposure is about 250k. The premiums just aren't high enough to cover their losses. Because it's the federal government, the people scream to their congressmen when their premiums are too high so they end up strong arming that branch and end up lowering the premiums. And then you wonder why they're going to go bankrupt without a government bailout. The regular insurance companies already went through this.
 
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