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> tl;dr: Beachfront property owners don't want to pay for their own flood insurance, so you get to pay for it instead. In October 2017 the government wrote off
by vonmoltke 7y ago
> tl;dr: Beachfront property owners don't want to pay for their own flood insurance, so you get to pay for it instead. In October 2017 the government wrote off $16 billion of that debt, and as of February 2018 it was still in debt to the tune of $20.5 billion.
The NFIP insures millions of properties, like mine, that are nowhere near a beach.
- wlesieutre 7y agoAre the premiums as artificially low in non-costal areas? I’ve been under the impression that most of our increasing flood risks over recent decades are in hurricane areas, but I do know we had pretty bad flooding in the Midwest this year too. Is that the new normal?
- zdragnar 7y agoFor the house I recently purchased, it's a little over 1% of the house value every year, based on reconstruction cost and flood zone classification. Is it artificially low? I don't think so, at leaat for my circumstances.
- vonmoltke 7y agoFEMA sent us the NFIP claim history when we bought the house, and based on the amount paid out and risk of recurrence, versus the premium we pay, I think our premium is fair. Interestingly, despite being inland in New Jersey the two claims correlate with two hurricane strikes (Floyd and Sandy). The river we are on is pretty small and only rises when there is heavy rain (and starts falling almost as soon as the rain stops).