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There is a middle ground though. If a specific area floods very frequently, it seems silly to keep bailing it out. At some point we have to cut our losses and

There is a middle ground though. If a specific area floods very frequently, it seems silly to keep bailing it out. At some point we have to cut our losses and face reality and just stop investing there.

plasticchris 4y ago
Agreed, and the regular insurance companies figured out the solution a long time ago: raise premiums until their expected value exceeds the payouts over the average duration of this type of policy.
aperson_hello 4y ago
And most of the places that have major recurring flooding issues are hyper local (for now at least). We're talking neighborhoods or parts of neighborhoods, not full cities (yet). The number of affected properties is relatively small, but they make up a large portion of overall claims. Stop covering those locations (even if it's a coordinated buyout program of sorts) and the problem sorts itself out... Edit: and then install retaining infrastructure in place of those houses and you stop future issues too for neighbors
- astura 4y ago
  >The number of affected properties is relatively small, but they make up a large portion of overall claims. Specifically, 1% of properties make up 25% of all claims.
codyb 4y ago
Yea... but... wouldn't the Fort Myers area count as part of the middle ground that's fine? They don't get hit hard consistently. Should we say that NYC should be abandoned cause Sandy hit 10 years ago and another might hit again one day? And also I actually said in my post "there are areas we shouldn't".
- NickC25 4y ago
  Ft. Myers has been hit a few times, but you're right - it's not constant. But Florida in general gets hit pretty hard every year - it's just that it happens to different parts of Florida. The Keys get battered every few years, so does Miami, so does Tampa. Even Orlando is not safe. However, Ft Myers is different from NYC in that sea level rises affect South Florida a hell of a lot more than Manhattan. A 10 foot sea level rise would only affect a small (but definitely not insignificant) part of Manhattan. That same rise would render all of Florida's coastlines (on both sides) uninhabitable. See link below: https://coast.noaa.gov/slr/ https://coast.noaa.gov/slr/ NYC doesn't get hit anywhere close to as often as Florida's coasts do. It's not even comparable. The insurers are leaving Florida in droves because their risk assessment teams understand that sea level rises and climate change is a significant financial risk to their operations in Florida, no matter how much Governor DeSantis wants to pretend otherwise. It makes zero sense to insure areas that are going to be uninhabitable in our lifetimes, much less spend billions rebuilding them time and time again. Disclaimer: I live in South Florida.
  - gaadd33 4y ago
    Are you sure it's due to risk assessment for climate change and not the huge amount of fraud and litigation? I've heard that something like 80% of all homeowners insurance lawsuits have been from Florida despite only having 9% of claims. When I looked into the issue that was the driving cause I found, it would be good to read some info about the climate change assessment making it into their decision to pull out. Disclaimer: Also in South Florida
    - NickC25 4y ago
      I'm sure it's a mix of both. Yes, there's a ton of home insurance lawsuits here, and yes, the amount of fraud here is mind-boggling. However, the rapid rise in sea level and the fact that the state legislature is bound by law to not discuss it at all is also a factor. South Florida's coasts will be uninhabitable within 50 years, and if I'm an insurer, that's also on my mind.
knodi123 4y ago
> floods very frequently [...] keep bailing it out pun intended?
- FartyMcFarter 4y ago
  Nope, I didn't even know that meaning of "bailing out", TIL :)

plasticchris 4y ago

Agreed, and the regular insurance companies figured out the solution a long time ago: raise premiums until their expected value exceeds the payouts over the average duration of this type of policy.

aperson_hello 4y ago

And most of the places that have major recurring flooding issues are hyper local (for now at least). We're talking neighborhoods or parts of neighborhoods, not full cities (yet). The number of affected properties is relatively small, but they make up a large portion of overall claims. Stop covering those locations (even if it's a coordinated buyout program of sorts) and the problem sorts itself out... Edit: and then install retaining infrastructure in place of those houses and you stop future issues too for neighbors

astura 4y ago
>The number of affected properties is relatively small, but they make up a large portion of overall claims. Specifically, 1% of properties make up 25% of all claims.

codyb 4y ago

Yea... but... wouldn't the Fort Myers area count as part of the middle ground that's fine? They don't get hit hard consistently. Should we say that NYC should be abandoned cause Sandy hit 10 years ago and another might hit again one day? And also I actually said in my post "there are areas we shouldn't".

NickC25 4y ago
Ft. Myers has been hit a few times, but you're right - it's not constant. But Florida in general gets hit pretty hard every year - it's just that it happens to different parts of Florida. The Keys get battered every few years, so does Miami, so does Tampa. Even Orlando is not safe. However, Ft Myers is different from NYC in that sea level rises affect South Florida a hell of a lot more than Manhattan. A 10 foot sea level rise would only affect a small (but definitely not insignificant) part of Manhattan. That same rise would render all of Florida's coastlines (on both sides) uninhabitable. See link below: https://coast.noaa.gov/slr/ https://coast.noaa.gov/slr/ NYC doesn't get hit anywhere close to as often as Florida's coasts do. It's not even comparable. The insurers are leaving Florida in droves because their risk assessment teams understand that sea level rises and climate change is a significant financial risk to their operations in Florida, no matter how much Governor DeSantis wants to pretend otherwise. It makes zero sense to insure areas that are going to be uninhabitable in our lifetimes, much less spend billions rebuilding them time and time again. Disclaimer: I live in South Florida.
- gaadd33 4y ago
  Are you sure it's due to risk assessment for climate change and not the huge amount of fraud and litigation? I've heard that something like 80% of all homeowners insurance lawsuits have been from Florida despite only having 9% of claims. When I looked into the issue that was the driving cause I found, it would be good to read some info about the climate change assessment making it into their decision to pull out. Disclaimer: Also in South Florida
  - NickC25 4y ago
    I'm sure it's a mix of both. Yes, there's a ton of home insurance lawsuits here, and yes, the amount of fraud here is mind-boggling. However, the rapid rise in sea level and the fact that the state legislature is bound by law to not discuss it at all is also a factor. South Florida's coasts will be uninhabitable within 50 years, and if I'm an insurer, that's also on my mind.

knodi123 4y ago

> floods very frequently [...] keep bailing it out pun intended?

FartyMcFarter 4y ago
Nope, I didn't even know that meaning of "bailing out", TIL :)