topic Re: National Flood insurance program in Home

National Flood insurance program

151949 — Fri, 22 Dec 2017 17:24:25 GMT

Last night on our local news they said that after the 2017 storm season FEMA - who funds the flood insurance program - is 24 million over their budget and at midnight last night the national flood insurance program was no longer to be funded.They said if you are getting a mortgage that required flood insurance - as most do where we live - that those mortgages would not be able to close because there would be no flood insurance to fullfill that requirement. They did not say anything about folks like us who already have flood insurance and have already paid our very high premium for next year. We have not received any letter etc to say we don't have insurance , nor gotten our premium for next year refunded so we are assuming we are still covered. However, you know what they say about assuming. Governor Scott has been trying to get private insurance companies to cover flood but they all want nothing to do with this. Years ago when Fl. residents were not able to obtain wind damage insurance(hurricane ins.) the state started Citizens insurance and covered the residents. We had Citizens until last year when Citizens turned us over to a private company.I wonder if they may do the same with flood?

Re: National Flood insurance program

software — Fri, 22 Dec 2017 17:32:31 GMT

Contact your representative.

I'm sure there have been deadlines in the past, disasters, etc but the program was funded again despite it all.

Is that part of the "government shut-down"?

If so, I'm sure it will be revived

@151949

Re: National Flood insurance program

151949 — Fri, 22 Dec 2017 17:35:14 GMT

No the government shut down isn't til Jan ! I think.

Re: National Flood insurance program

software — Fri, 22 Dec 2017 17:39:45 GMT

Government shut down starts tonight, I think there are measures in place to keep it going until Jan 19, 2018

If the flood funds are part of the shut down, it could be part of this extension.

@151949

Re: National Flood insurance program

151949 — Fri, 22 Dec 2017 19:05:10 GMT

I don't think this has to do with the gov't shut down. It specifically started at 12mid last night.

Re: National Flood insurance program

itsmagic — Fri, 22 Dec 2017 19:09:31 GMT

As I understand it, the National flood insurance program is part of the funding that would have been shut down but has now been extended to January 19, 2018. So you’re safe until then.

Re: National Flood insurance program

151949 — Fri, 22 Dec 2017 19:15:10 GMT

@itsmagic wrote:
As I understand it, the National flood insurance program is part of the funding that would have been shut down but has now been extended to January 19, 2018. So you’re safe until then.

I don't think that is correct. It was actually supposed to expire Sept 30 but was given a temporary extension until midnight last night. It is defunded as of right now - not Jan 19. They said very specifically on the news today that mortgages that were to close today but required flood insurance had their closings today cancelled. This could have potentially far reaching economic impact as construction is huge business down here.

Re: National Flood insurance program

sunshine45 — Fri, 22 Dec 2017 19:37:06 GMT

"We are pleased that the National Flood Insurance Program [NFIP] was extended as part of the continuing resolution," said Jon Gentile, PIA vice president of government relations. "This will keep the flood insurance program fully operational through January 19, guarding against interruptions for policyholders and protecting the progress of real estate transactions that require evidence of flood coverage."

via prnewswire

Re: National Flood insurance program

151949 — Fri, 22 Dec 2017 20:07:17 GMT

@sunshine45 well, that is good news in case my home would happen to flood in the next 3 weeks BUT I don't think a bank is going to give anyone a mortgage based on a temporary fix that only would guarantee insurance for 3 more weeks.

Re: National Flood insurance program

151949 — Fri, 22 Dec 2017 21:20:08 GMT

I don't want to get banned for being political but as i have been googling about flood insurance I saw several articles saying the current sentiment is to get rid of both FEMA and the Flood insurance program as too expensive, along with many other safety nets.

Re: National Flood insurance program

CelticCrafter — Sat, 23 Dec 2017 09:35:07 GMT

@sunshine45 wrote:
"We are pleased that the National Flood Insurance Program [NFIP] was extended as part of the continuing resolution," said Jon Gentile, PIA vice president of government relations. "This will keep the flood insurance program fully operational through January 19, guarding against interruptions for policyholders and protecting the progress of real estate transactions that require evidence of flood coverage."

via prnewswire

I wonder how many mortgage companies will postpone closings until after 1/19 waiting to see what happens.

Re: National Flood insurance program

gizmogal — Sat, 23 Dec 2017 09:45:46 GMT

I paid up my annual premium for flood insurance about a month ago. If they cancel the program altogether, I wonder if I get part of my premium back since the policy will be voided?

I do not live in a Flood Zone where insurance is compulsory, and my house is long paid for so no mortgage involved , but after Hurricane Sandy I was happy I already had that insurance and was made good on a claim that would only have occurred because of a storm that extreme. So I keep the insurance.

I wonder if I forfeit the payment I recently made if the program is discontinued by the federal government.

Re: National Flood insurance program

CelticCrafter — Sat, 23 Dec 2017 10:39:15 GMT

@gizmogal - I thought of that too.

Re: National Flood insurance program

151949 — Sat, 23 Dec 2017 12:02:53 GMT

@gizmogal They can't keep your premium and not provide the coverage because that would be fraud.It would be illegal and they would probably have about 5 million lawsuits. Where I live - a beach town in a hurricane area -flood insurance is required to get a mortgage, but most homes are not mortgaged because the vast majority (about 80%) of the residents are retirees who travel back & forth between here and a home up north, and their home here was bought with cash.

Re: National Flood insurance program

gardenman — Sat, 23 Dec 2017 12:37:02 GMT

The challenge with programs like FEMA and the Flood Insurance program is that when disaster hits, homeowners insurance will want to wait until they see what the feds pay and the feds will want to wait until they see what the homeowners insurance pays, and either nobody pays, or both pay and chaos reigns supreme.

When Sandy hit NJ, my part of the state was largely spared, but FEMA rushed in with money. An apartment tenant three houses north of me filed for a claim for $30,000 (I believe, but it may have been $40,000) for storm damage and got it in FEMA emergency relief funds only to take the money and vamoose. They just saw it as a quick way to get some free cash and they took it. I dare say they weren't the only ones filing a false claim.

Sorting out legitimate claims from people who really need the help, from scoundrels looking to cash in on a quick buck is a challenge in disasters.

A single, owner paid for, insurance policy that covered everything would be ideal, but lots of homeowners don't want to carry all inclusive homeowners insurance, it's too pricey, and unavailable, for some flood/disaster prone areas. Insurance companies want to make money and not lose money. Constantly paying to rebuild a house in a known floodplain is just not smart business for an insurance company. The only way they could do that is by charging a fortune for the policy.

I think one of two things has to happen. Either the federal government has to get totally out of the insurance business (no FEMA financial relief and no national flood insurance program) or they have to find a way to provide all-inclusive insurance for people living in those disaster prone areas. Of the two options, the first is most likely and also likely the best option for Americans. There is very little that government can do for less money than private industry. A government run insurance program for high-risk homeowners would likely get insanely expensive for all involved. Private insurers would at least be competing against one another and that should help contain the rates.

Re: National Flood insurance program

151949 — Sat, 23 Dec 2017 14:15:48 GMT

@gardenman No matter what programs the government puts in place to assist people or be a safety net for victims there will always be some fraud. Sadly it is the nature of some people to think it's OK to rip others off - esp. the government. I have no problem paying for my flood insurance, but it certainly is a necessity for those of us who live in areas that are major storm prone. Also, there is a difference between insuring people who live in areas where there are floods repeatedly , year after year, and those who have never made a claim. We didn't have a hurricane in my Florida town for 57 years but this year we got a cat 4. I would have no issue with them limiting the claims that could be made on flood insurance.

eta : when we lived in Pittsburgh there were certain areas that flooded every year. Year after year there would be a big spring storm and the same people would be on the evening news crying and carrying on about what they have lost in this flood. Mostly they were flooded basements only, because a creek had risen. For homes such as this - where , really!, don't you have an iota of common sense to not put things in the basement? Anyway - for that situation I do believe they need to limit the # of claims they can make.