I guess it doesn’t matter if we pay for those using flood whether it is through the taxpayer system or the unaffordable homeowner premium if flood is going to be included.
Before you start demanding that, please run a price check on flood insurance in a flood-zone with an excess carrier that’s using actuarially sound rates. It’ll be an eye opener.
The NFIP is currently priced way WAY below fiscally sound rates, and is still in massive debt.
For most insureds, the fact that it’s heavily subsidized by the US government is the only reason they can afford the premium.
Soaked does have a point however… if our governmental don’t get off their collective rears and pass either a revision or another extension to the NFIP, it won’t make a difference if new coverage is purchased now as it won’t be able to go into effect (unless it’s lender required for a closing prior to April 1st).
The problem I see with putting it on the homeowner’s policy is that some houses that are in high risk flood area tha currently have standard homeowners policies would then most likely be non-renewed as the insurers rewrite there maps on what territories they will and will not insure. So because someone lives in a high flood risk area, they now can’t get any other kind of coverage on their home. Real estate could then not close on houses that they are trying to sell because they can not get insurance on it that the mortgagee requires, and if by chance the mortgagee force places their insurance on the house, they most likely would have th charge even more then they do now because they would then have to worry about a flood. With how bad the encomony is right now, thats the last thing that needs to be done. I am not an acuary, but I think if standard homeowners policies had to cover flood as well, the rates might sky rocket for all the homeowner’s policies left on the books after a massive non-renewal blitz on the high flood risk areas.
All that being said, something needs to be done. I have heard that NFIP is broke, and if it is, it is our fiscal responsiblilty to figure out how to make it work.
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Not if congress doesn’t pass a longer extension .
Can one still buy insurance only when the heavy storm approaches?
Or, in the immortal words of an unnamed manager over at NUFIC GPL, can one still insure a burning barn for fire?
Get Rid of the NFIP and allow the coverage under a homeowners or commercial property policy.
This way the tax payers are no longer involved in uninsured flood losses……
I guess it doesn’t matter if we pay for those using flood whether it is through the taxpayer system or the unaffordable homeowner premium if flood is going to be included.
Fed Up- Don’t be a Hater
Before you start demanding that, please run a price check on flood insurance in a flood-zone with an excess carrier that’s using actuarially sound rates. It’ll be an eye opener.
The NFIP is currently priced way WAY below fiscally sound rates, and is still in massive debt.
For most insureds, the fact that it’s heavily subsidized by the US government is the only reason they can afford the premium.
Soaked does have a point however… if our governmental don’t get off their collective rears and pass either a revision or another extension to the NFIP, it won’t make a difference if new coverage is purchased now as it won’t be able to go into effect (unless it’s lender required for a closing prior to April 1st).
The problem I see with putting it on the homeowner’s policy is that some houses that are in high risk flood area tha currently have standard homeowners policies would then most likely be non-renewed as the insurers rewrite there maps on what territories they will and will not insure. So because someone lives in a high flood risk area, they now can’t get any other kind of coverage on their home. Real estate could then not close on houses that they are trying to sell because they can not get insurance on it that the mortgagee requires, and if by chance the mortgagee force places their insurance on the house, they most likely would have th charge even more then they do now because they would then have to worry about a flood. With how bad the encomony is right now, thats the last thing that needs to be done. I am not an acuary, but I think if standard homeowners policies had to cover flood as well, the rates might sky rocket for all the homeowner’s policies left on the books after a massive non-renewal blitz on the high flood risk areas.
All that being said, something needs to be done. I have heard that NFIP is broke, and if it is, it is our fiscal responsiblilty to figure out how to make it work.