4 ms·

> There is going to be a flood claim; I feel like I'm missing something. Wouldn't this be something to price into coverage? If it's a high risk, premiums up to

> There is going to be a flood claim; I feel like I'm missing something. Wouldn't this be something to price into coverage? If it's a high risk, premiums up to 1/x of the home value. Don't like it? You can't afford to own the house.

guidedlight 2y ago
In New Zealand after the Christchurch earthquake, the government condemned entire suburbs and made it illegal to build there. They then initiated an inspection of every multi-storey building, and allocated an NBS rating. Some buildings were condemned, and other buildings must be strengthened. It's almost impossible to sell these affected buildings. So in the US for a national insurance scheme to work, the government would need to actively remove high risk properties. New Zealand also has no state governments, just one national government. So it's much easier for them to implement these sorts of policies.
- Supermancho 2y ago
  > the government would need to actively remove high risk properties. Those that couldn't pay the insurance (like 100% of your property value, by risk), just like any other repossession would require the local govt to help take control of the property. The Fed's work would be in verifying valuations and setting profit margins. eg Regulation. Sounds good to me.
cyanydeez 2y ago
At this point, the insurance is basically the cost of replacing your house, guaranteed in 10 years. These people barely can afford paying a 30 year mortgage. There's absolutely no logic behind insurance in Florida or anywhere along the coast. Even if 10 years is hyperbole, the real risks are absolutely not insurable.
- Tostino 2y ago
  There are a ton of waterfront homes here in fl on the gulf coast that haven't flooded in 50+ years since they were built...until last week. It is absolutely not a guarantee that all waterfront property should just be written off. But some property absolutely should because this shit happens every 5 years.
geoduck14 2y ago
At the moment, the cost of flood insurance in the US is too cheap. That is, the price doesn't reflect the risk. It is a ticking time bomb. On the other hand, if you are a home owner in a flood zone, the best "investment" you can make is buy flood insurance and hope for a flood. Of note, flood insurance is nationalized, so probably will be backed by your tax dollars

guidedlight 2y ago

In New Zealand after the Christchurch earthquake, the government condemned entire suburbs and made it illegal to build there. They then initiated an inspection of every multi-storey building, and allocated an NBS rating. Some buildings were condemned, and other buildings must be strengthened. It's almost impossible to sell these affected buildings. So in the US for a national insurance scheme to work, the government would need to actively remove high risk properties. New Zealand also has no state governments, just one national government. So it's much easier for them to implement these sorts of policies.

Supermancho 2y ago
> the government would need to actively remove high risk properties. Those that couldn't pay the insurance (like 100% of your property value, by risk), just like any other repossession would require the local govt to help take control of the property. The Fed's work would be in verifying valuations and setting profit margins. eg Regulation. Sounds good to me.

cyanydeez 2y ago

At this point, the insurance is basically the cost of replacing your house, guaranteed in 10 years. These people barely can afford paying a 30 year mortgage. There's absolutely no logic behind insurance in Florida or anywhere along the coast. Even if 10 years is hyperbole, the real risks are absolutely not insurable.

Tostino 2y ago
There are a ton of waterfront homes here in fl on the gulf coast that haven't flooded in 50+ years since they were built...until last week. It is absolutely not a guarantee that all waterfront property should just be written off. But some property absolutely should because this shit happens every 5 years.

geoduck14 2y ago

At the moment, the cost of flood insurance in the US is too cheap. That is, the price doesn't reflect the risk. It is a ticking time bomb. On the other hand, if you are a home owner in a flood zone, the best "investment" you can make is buy flood insurance and hope for a flood. Of note, flood insurance is nationalized, so probably will be backed by your tax dollars