Quote:
Originally Posted by Reiver
...... If the Govt. does not provide flood insurance that is no reason to believe flood insurance will not be available.....it will simply not be Federally subsidized.
Tell me why the Govt. should subsidize home insurance...
|
Simple, If no subsidy, only the more wealthy will have flood insurance. Flood insurance
might be available but at a price few working people can afford. No private insurer wants to write flood insurance. It is all a matter of economics:
High ground that isn't likely to flood is very expensive therefore housing and apartments for lower incomes are built on lower land, the lower the income, the lower the land. The
maximum NFIP insurance for a house is $250K for the house and $100K for the contents. If you want more than that you go on the private market for any additional insurance and hold your breath when you get the quote.
Maximum insurance in an area with little to no threat of flood will cost about $450 / year. That same insurance in a flood zone can cost over $2500 (depends on the probability of that home being flooded.) For a working family just struggling to keep a roof over their family's head and feed them, $2500 a year is a lot of money. This is in addition to the standard homeowners insurance (and TX has about the highest homeowner rates in the county). AND if you live in a coastal county (other than Harris*) you also have to buy a separate windstorm policy as standard HO policies in those areas exclude windstorm damage (high winds, hail, etc.). Very similar to Flood, windstorm is CATPOOL insurance and all insurers who write HO in TX have to also write windstorm.
When I lived near Rockport/Port Aransas where Harvey made landfall I carried standard TX HO policy, a separate windstorm policy (which was more than the HO) and a NFIP flood policy. Many people just can't afford all that even though they may really need it someday.... you just take your chances.