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.