5 ms·

The banks will just ask for flood insurance.

chollida1 8y ago
And when your house floods every other year, that means flood insurance will cost you what it costs to rebuild your house.... each year. which is to say, you won't be able to get flood insurance.
- Analemma_ 8y ago
  Until the Federal government gets out of the guaranteed flood insurance business-- which is unlikely to happen soon, as there would be fierce political blowback-- you will always be able to get flood insurance supported by taxpayers.
  - Retric 8y ago
    Federal Flood Insurance has had zero net subsidy from 1968 to 2004. While covering up to 5.5 million homes in the US. https://en.wikipedia.org/wiki/National_Flood_Insurance_Program https://en.wikipedia.org/wiki/National_Flood_Insurance_Progr... Currently it's 25 billion in debt, but that's cheap in terms of federal programs of that magnitude (~15 $ per home per year). Further, the net economic gain from allowing people to build in slightly at risk areas has easily been worth 25 billion over that time period. Consider, without some form of insurance you could not build downstream of major dam's as the low risk of them failing puts huge areas at risk.
    - mrfredward 8y ago
      So the program broke even for 36 years, then started running up debt in the early 2000s...because of more severe weather. As sea levels rise and weather gets more severe, this program will become much more expensive.
      - Retric 8y ago
        It's really hard to tell how much of the last 15 years is unusual vs the new normal. Presumably things can be adjusted for with slightly increased premiums as it's still very close to break even for now.
okmokmz 8y ago
Except flood insurance doesn't appear to be economically viable in those areas >More than 861,000 of them do not have flood insurance. And for homes in those counties that aren't designated flood zones, the numbers are even worse. >Those four counties have a population about 5 million people, and include the Florida Keys, Miami, Fort Lauderdale and Naples. >And there's still cause for concern about homes and businesses covered by flood insurance. >The National Flood Insurance Program, which is part of FEMA, is chronically underfunded. >A series of major storms that caused floods in the last 12 years, including Hurricane Katrina in 2005 and Superstorm Sandy in 2012, has left the program roughly $25 billion in debt and with limited borrowing resources. >Its financial woes are expected to be compounded by the flooding that devastated Houston and the Texas Gulf Coast after Hurricane Harvey. >Irma will only add to the problem. [1] [1] https://money.cnn.com/2017/09/08/news/economy/flood-insurance-irma-florida-miami/index.html https://money.cnn.com/2017/09/08/news/economy/flood-insuranc...
- h4b4n3r0 8y ago
  >> Except flood insurance doesn't appear to be economically viable in those areas That’s by design. They don’t want you to build there.

And when your house floods every other year, that means flood insurance will cost you what it costs to rebuild your house.... each year. which is to say, you won't be able to get flood insurance.

Analemma_ 8y ago
Until the Federal government gets out of the guaranteed flood insurance business-- which is unlikely to happen soon, as there would be fierce political blowback-- you will always be able to get flood insurance supported by taxpayers.
- Retric 8y ago
  Federal Flood Insurance has had zero net subsidy from 1968 to 2004. While covering up to 5.5 million homes in the US. https://en.wikipedia.org/wiki/National_Flood_Insurance_Program https://en.wikipedia.org/wiki/National_Flood_Insurance_Progr... Currently it's 25 billion in debt, but that's cheap in terms of federal programs of that magnitude (~15 $ per home per year). Further, the net economic gain from allowing people to build in slightly at risk areas has easily been worth 25 billion over that time period. Consider, without some form of insurance you could not build downstream of major dam's as the low risk of them failing puts huge areas at risk.
  - mrfredward 8y ago
    So the program broke even for 36 years, then started running up debt in the early 2000s...because of more severe weather. As sea levels rise and weather gets more severe, this program will become much more expensive.
    - Retric 8y ago
      It's really hard to tell how much of the last 15 years is unusual vs the new normal. Presumably things can be adjusted for with slightly increased premiums as it's still very close to break even for now.

okmokmz 8y ago

Except flood insurance doesn't appear to be economically viable in those areas >More than 861,000 of them do not have flood insurance. And for homes in those counties that aren't designated flood zones, the numbers are even worse. >Those four counties have a population about 5 million people, and include the Florida Keys, Miami, Fort Lauderdale and Naples. >And there's still cause for concern about homes and businesses covered by flood insurance. >The National Flood Insurance Program, which is part of FEMA, is chronically underfunded. >A series of major storms that caused floods in the last 12 years, including Hurricane Katrina in 2005 and Superstorm Sandy in 2012, has left the program roughly $25 billion in debt and with limited borrowing resources. >Its financial woes are expected to be compounded by the flooding that devastated Houston and the Texas Gulf Coast after Hurricane Harvey. >Irma will only add to the problem. [1] [1] https://money.cnn.com/2017/09/08/news/economy/flood-insurance-irma-florida-miami/index.html https://money.cnn.com/2017/09/08/news/economy/flood-insuranc...

h4b4n3r0 8y ago
>> Except flood insurance doesn't appear to be economically viable in those areas That’s by design. They don’t want you to build there.