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12-23-2017 04:35 AM
@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.
12-23-2017 04:45 AM
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.
12-23-2017 07:02 AM
@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.
12-23-2017 07:37 AM
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.
12-23-2017 07:46 AM - edited 12-23-2017 09:15 AM
@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.
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