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Eventually the risk will be priced into homeowners insurance and nobody will be able to afford to live there anyways. It will happen faster than most homeowners
by quickthrowman 1y ago
Eventually the risk will be priced into homeowners insurance and nobody will be able to afford to live there anyways. It will happen faster than most homeowners in that area think.
- brudgers 1y agoHome owner’s insurance does not cover flood. As I said elsewhere, twenty years ago the rule of thumb was private flood insurance ran 10% of insured value per year. That’s why the Federal Flood Insurance Program was created in the Nixon administration. Of course home owner insurance in Florida has been astronomical and hard to get for a long time because it covers wind damage and that’s most of the damage from hurricanes. The solution was a State pool (insurer of last resort) which by law had to be more expensive than any private option. The results were economically rational…remember banks require home owner insurance as a condition of mortgages. Or to put it another way, pricing risk is just table stakes. Pricing in profit is where the money is.