The Insurance Aspect of these Tropical Storms

[DGS49]

Ignoring the human cost of these storms for a moment, it may be instructive to mention the financial costs and the insurance aspects.

Your Flood Insurance is heavily subsidized by the taxpayers. Billions of your tax dollars backstop flood insurers because Congress long ago deemed it proper and politically expedient to do so. Without these subsidies, flood insurance would be prohibitively expensive.

Flood Insurance

The National Flood Insurance Program (NFIP) is managed by the FEMA and is delivered to the public by a network of more than 50 insurance companies and the NFIP Direct.

www.fema.gov

But think about the impact of that Flood Insurance. People LOVE to live near water. It is not rational, but in every venue where it is physically possible to do so, the property that abuts a body of water or an estuary is a lot more valuable than a similar property that sits half a mile away. This goes both for ownership and rentals.

It is foolish to build a residence in an area that is vulnerable to "tropical storms" and Spring flooding. If it were not for Federally subsidized flood insurance, flood insurance premiums in many of such areas would be prohibitive...and without flood insurance, no lenders would financing building in such zones...and with no mortgage loans NOBODY WOULD LIVE THERE(!).

The examples are numerous. Without subsidized flood insurance, the Outer Banks of North Carolina would basically not exist. Most of the hot spots of Gulf-side Florida would not exist. Hell, New Orleans might be nothing more than a ghost town and a historical curiosity.

But who really benefits from this flood insurance subsidy? Rich and relatively rich White people. They are basically the only ones with the resources to buy and rent these properties, and without the taxpayer-subsidized flood insurance, the communities in question would simply not exist.

So while you are feeling sorry for the folks who are digging their way out of this destruction (assuming they are still alive), feel sorry for yourself because you are paying a large part of the recovery cost. And those properties WILL BE REBUILT, even though it will STILL be stupid to build there, because of your generous flood insurance subsidies. And YOU still won't be able to own a home there.

Thank you very much.

 

[DBA]

But who really benefits from this flood insurance subsidy? Rich and relatively rich White people

You mean except in New Orleans.

And what does race have to do with any of this?

 

[1srelluc]

I had a 1/4 interest in a rental in Hatteras Village, NC and a Cat 1 (Irene) came through and washed it into the middle of Pimlico Sound.....When the insurance paided-off I took the money and ran. The lot was sold and another rental built on the lot within a year.

 

[Woodznutz]

Flooding is one thing, but when the entire infrastructure of a town is destroyed, and the very landscape altered that's something else again. Who pays for that?

 

[Woodznutz]

Ignoring the human cost of these storms for a moment, it may be instructive to mention the financial costs and the insurance aspects.

Your Flood Insurance is heavily subsidized by the taxpayers. Billions of your tax dollars backstop flood insurers because Congress long ago deemed it proper and politically expedient to do so. Without these subsidies, flood insurance would be prohibitively expensive.

Flood Insurance

The National Flood Insurance Program (NFIP) is managed by the FEMA and is delivered to the public by a network of more than 50 insurance companies and the NFIP Direct.

www.fema.gov

But think about the impact of that Flood Insurance. People LOVE to live near water. It is not rational, but in every venue where it is physically possible to do so, the property that abuts a body of water or an estuary is a lot more valuable than a similar property that sits half a mile away. This goes both for ownership and rentals.

It is foolish to build a residence in an area that is vulnerable to "tropical storms" and Spring flooding. If it were not for Federally subsidized flood insurance, flood insurance premiums in many of such areas would be prohibitive...and without flood insurance, no lenders would financing building in such zones...and with no mortgage loans NOBODY WOULD LIVE THERE(!).

The examples are numerous. Without subsidized flood insurance, the Outer Banks of North Carolina would basically not exist. Most of the hot spots of Gulf-side Florida would not exist. Hell, New Orleans might be nothing more than a ghost town and a historical curiosity.

But who really benefits from this flood insurance subsidy? Rich and relatively rich White people. They are basically the only ones with the resources to buy and rent these properties, and without the taxpayer-subsidized flood insurance, the communities in question would simply not exist.

So while you are feeling sorry for the folks who are digging their way out of this destruction (assuming they are still alive), feel sorry for yourself because you are paying a large part of the recovery cost. And those properties WILL BE REBUILT, even though it will STILL be stupid to build there, because of your generous flood insurance subsidies. And YOU still won't be able to own a home there.

Thank you very much.

Waterfront property owners pay much more in property taxes, but don't receive any more services. Those who don't live near the water get those benefits. So, there's that.

 

[rampart]

Ignoring the human cost of these storms for a moment, it may be instructive to mention the financial costs and the insurance aspects.

Your Flood Insurance is heavily subsidized by the taxpayers. Billions of your tax dollars backstop flood insurers because Congress long ago deemed it proper and politically expedient to do so. Without these subsidies, flood insurance would be prohibitively expensive.

Flood Insurance

The National Flood Insurance Program (NFIP) is managed by the FEMA and is delivered to the public by a network of more than 50 insurance companies and the NFIP Direct.

www.fema.gov

But think about the impact of that Flood Insurance. People LOVE to live near water. It is not rational, but in every venue where it is physically possible to do so, the property that abuts a body of water or an estuary is a lot more valuable than a similar property that sits half a mile away. This goes both for ownership and rentals.

It is foolish to build a residence in an area that is vulnerable to "tropical storms" and Spring flooding. If it were not for Federally subsidized flood insurance, flood insurance premiums in many of such areas would be prohibitive...and without flood insurance, no lenders would financing building in such zones...and with no mortgage loans NOBODY WOULD LIVE THERE(!).

The examples are numerous. Without subsidized flood insurance, the Outer Banks of North Carolina would basically not exist. Most of the hot spots of Gulf-side Florida would not exist. Hell, New Orleans might be nothing more than a ghost town and a historical curiosity.

But who really benefits from this flood insurance subsidy? Rich and relatively rich White people. They are basically the only ones with the resources to buy and rent these properties, and without the taxpayer-subsidized flood insurance, the communities in question would simply not exist.

So while you are feeling sorry for the folks who are digging their way out of this destruction (assuming they are still alive), feel sorry for yourself because you are paying a large part of the recovery cost. And those properties WILL BE REBUILT, even though it will STILL be stupid to build there, because of your generous flood insurance subsidies. And YOU still won't be able to own a home there.

Thank you very much.

the problem is not "living near water." humans evolved in or near the water and have lived on coastlines since genesis.

the problem is million dollar mansions on the hurricane coast. people once lived in grass huts because they are easy and cheap to rebuild.

 

[lg325]

How many insurance companies will close shop and leave Florida as they did during Hurricane Andrew?
This will cause a big impact on people and the state .

 

[Woodznutz]

How many insurance companies will close shop and leave Florida as they did during Hurricane Andrew?
This will cause a big impact on people and the state .

Same with fire insurance out west.

 

[Woodznutz]

the problem is not "living near water." humans evolved in or near the water and have lived on coastlines since genesis.

the problem is million dollar mansions on the hurricane coast. people once lived in grass huts because they are easy and cheap to rebuild.

Cities penalize those properties with high property taxes and provide no better services. They should help rebuild them after storms so they can continue to collect the exorbitant revenue.

 

[rampart]

Cities penalize those properties with high property taxes and provide no better services. They should help rebuild them after storms so they can continue to collect the exorbitant revenue.

if you can afford a mcmansion, you should be on the hook for your own insurance.

 

[Captain Caveman]

Ignoring the human cost of these storms for a moment, it may be instructive to mention the financial costs and the insurance aspects.

Your Flood Insurance is heavily subsidized by the taxpayers. Billions of your tax dollars backstop flood insurers because Congress long ago deemed it proper and politically expedient to do so. Without these subsidies, flood insurance would be prohibitively expensive.

Flood Insurance

The National Flood Insurance Program (NFIP) is managed by the FEMA and is delivered to the public by a network of more than 50 insurance companies and the NFIP Direct.

www.fema.gov

But think about the impact of that Flood Insurance. People LOVE to live near water. It is not rational, but in every venue where it is physically possible to do so, the property that abuts a body of water or an estuary is a lot more valuable than a similar property that sits half a mile away. This goes both for ownership and rentals.

It is foolish to build a residence in an area that is vulnerable to "tropical storms" and Spring flooding. If it were not for Federally subsidized flood insurance, flood insurance premiums in many of such areas would be prohibitive...and without flood insurance, no lenders would financing building in such zones...and with no mortgage loans NOBODY WOULD LIVE THERE(!).

The examples are numerous. Without subsidized flood insurance, the Outer Banks of North Carolina would basically not exist. Most of the hot spots of Gulf-side Florida would not exist. Hell, New Orleans might be nothing more than a ghost town and a historical curiosity.

But who really benefits from this flood insurance subsidy? Rich and relatively rich White people. They are basically the only ones with the resources to buy and rent these properties, and without the taxpayer-subsidized flood insurance, the communities in question would simply not exist.

So while you are feeling sorry for the folks who are digging their way out of this destruction (assuming they are still alive), feel sorry for yourself because you are paying a large part of the recovery cost. And those properties WILL BE REBUILT, even though it will STILL be stupid to build there, because of your generous flood insurance subsidies. And YOU still won't be able to own a home there.

Thank you very much.

Is insurance cheaper on a brick house as opposed to a wooden one in the US?

 

[WorldWatcher]

Is insurance cheaper on a brick house as opposed to a wooden one in the US?

Brick or wooden normally isn't the problem (notice I said "normally").

Normally the problem is flooding and brick vs. wooden doesn't make much difference.

WW

 

[Captain Caveman]

Brick or wooden normally isn't the problem (notice I said "normally").

Normally the problem is flooding and brick vs. wooden doesn't make much difference.

WW

I just thought brick would dry out and not blow/float away, thus reducing insurance premiums.

 

[WorldWatcher]

I just thought brick would dry out and not blow/float away, thus reducing insurance premiums.

While extreme damage in a narrow area is of course possible and that's normally what we see on the TV because it makes the best video.

The vast majority of the cost of damage is the widespread flooding.

Comparing brick to wooden houses. Sure the exterior face might dry, but it's the flood waters in the house that cause the damage and brick doesn't stop that. The interior still has wooden floorboard, wall studs, furniture, etc. The dry wall has to be ripped out to above the flood high water mark and the interior dried before mold can set in.

With that said. I live on the East Coast in a wood construction house and hurricanes scare the crap out of me.

When I was stationed in Guam I lived in Navy housing. Total cinderblock/rebar reinforced walls (interior and exterior), a slab concreate roof (lower wind profile), and windows that could take a coconut at 150 mph (241 kph) and it was on an incline away from the house so flooding wouldn't wasn't an issue.

WW

 

[Captain Caveman]

While extreme damage in a narrow area is of course possible and that's normally what we see on the TV because it makes the best video.

The vast majority of the cost of damage is is the widespread flooding.

Comparing brick to wooden houses. Sure the exterior face might dry, but it's the flood waters in the house that cause the damage and brick dosen't stop that. The interior still has wooden floorboard and wall studs. The dry wall has to be ripped out to above the flood high water mark and the interior dried before mold can set in.

WW

Yes, brick can if the house is initially designed/built like that or adapted at a later stage. I work in construction.

In flood areas, we cement 3:1 render inside and skim over with multi-finish plaster. Just let it dry out. Concrete insulated floors just dry and then disinfectant out.

 

[WorldWatcher]

Yes, brick can if the house is initially designed/built like that or adapted at a later stage. I work in construction.

In flood areas, we cement 3:1 render inside and skim over with multi-finish plaster. Just let it dry out. Concrete insulated floors just dry and then disinfectant out.

I'm not saying what could be done.

I'm talking about normal construction in the US.

You typically have a brick façade on homes, and depending on the foundation either slap or crawl space. With the slab foundation you still have wooden stud/dry wall interiors. With crawl space wooden floors on top of that.

Yes, no doubt there is wind damage, but vast majority of hurricane damage is water.

WW

 

[Captain Caveman]

I'm not saying what could be done.

I'm talking about normal construction in the US.

You typically have a brick façade on homes, and depending on the foundation either slap or crawl space. With the slab foundation you still have wooden stud/dry wall interiors. With crawl space wooden floors on top of that.

Yes, no doubt there is wind damage, but vast majority of hurricane damage is water.

WW

I watch the likes of Perkin Brothers Construction on YouTube. American homes are kinda constructed as posh UK garden sheds. But, if you live in a country where things blow and wash away, to me it makes sense to build stuff in wood.

One difference is, we always say the larger size of timber first, so it's 3b2, 4b2, 8b2 etc..