Flood Insurance

[xoxoxoBruce]

My Aunt sent me a newspaper clipping from MA that has an article about flood insurance. It seems people from Texas to Maine are being dropped in record numbers as many smaller companies are going belly up or trying to avoid it. They paid out $27.3 billion last year (can you say hurricanes) and between 1990 and 2002 they paid out $1.17 for every $1 they collected in premiums.

In recent years people near the shore have had storm-related deductibles, up to 15% of the insured value, added to their policy. Not just on the beach either, in RI it's within 2 miles of the shore. In some parts of NJ it's 5 miles. At the same time rates are going up by leaps and bounds. Ins companies have requested 50% increases in NC.

The local angle for this newspaper article is Wendy Northcross who lives in West Barnstable, MA on Cape Cod. Ms Northcross is the CEO of the Cape Cod Chamber of Commerce. I'm having a tough time believing this but in 2 places the article says her premium jumped from $800 to $1250 per MONTH. God, I hope that's a mistake. Anyway she was eventually dropped and had to turn to the state operated FAIR program that's "considerably more expensive", but they didn't say how much.

For anyone that isn't aware, no flood insurance = no mortgage.
I've always had a hard time with people building these multi-million houses on the barrier islands and having them replaced by the insurance every few years. I think after the second time they should move. I do, however feel bad for the people that have lived near the coast for generations, who have to pay through the nose or can't get a mortgage.

After I bought my house the Feds(Army Corp of Engineers) decided I live in a flood plain and I had to get flood Ins, but I haven't experienced increases like these people.

[Troubleshooter]

A friend of mine is an architect in Fla and has heard that coverage for wind damage (read: hurricane damage) may be undergoing something of a drastic change over there. He didn't really have any details but he said it's coming soon.

[glatt]

Can't people get PMI to cover the mortgage part of the problem?

I agree that you shouldn't reward people who are dumb enough to build and rebuild mansions in extremely high risk areas. But you have to find some sort of balance. Maine sees an occasional hurricane, but the damage is nothing compared to what Florida sees.

[richlevy]

Originally Posted by glatt

Can't people get PMI to cover the mortgage part of the problem?

I agree that you shouldn't reward people who are dumb enough to build and rebuild mansions in extremely high risk areas. But you have to find some sort of balance. Maine sees an occasional hurricane, but the damage is nothing compared to what Florida sees.

What pisses me off are the people who are not even told their houses are in a flood plain when they buy them.

Add to that the fact that some flooding is man-made due to watershed deterioration from overbuilding and poor municipal planning.

[xoxoxoBruce]

Originally Posted by richlevy

What pisses me off are the people who are not even told their houses are in a flood plain when they buy them.

That is illegal and the realtor/seller/title company can all be sued if they knew. The title company always knows.

Of course if it's flood prone and not legally flood plain, good luck.

Rereading my post I realized they are probably separating out storm(wind) damage from flood(water) damage in some cases.

[Clodfobble]

Can't people get PMI to cover the mortgage part of the problem?

PMI only applies until you've paid down 20% of the loan. It's just supposed to make sure you've got a "stake" in the house, because they'd really rather not have to repossess a house after a mere year or two.

But if the house is destroyed, and you decide to stop paying the mortgage, there's no collateral for them to repossess.

[richlevy]

Originally Posted by xoxoxoBruce

That is illegal and the realtor/seller/title company can all be sued if they knew. The title company always knows.

Of course if it's flood prone and not legally flood plain, good luck.

Rereading my post I realized they are probably separating out storm(wind) damage from flood(water) damage in some cases.

We just had some flooding in this area and one of the officials on TV mentioned a 100 year flood map. I wonder what designates a flood plain if you take all 100 years into account?

There does appear to be a new weather cycle coming. I don't know if this is just the part of a natural longer cycle we don't have records for or due to manmade changes to the environment, but the patterns seem less smooth. Where there was less variation, there now seems to be a study in contrast between drought and flood.

If I were buying a house, I'd look at all 100 years to find the safest place.

[lookout123]

your county assessor's website shouls be able to show you all of that within a few clicks.

[richlevy]

My county assessors office didn't have much on-line information, and I noticed a lot of fee-based flood maps online.

Here is a watershed map from the PA dept of environmental protection that shows 100 and 500 year flood plains.

TIP: You have to pick 'Streams and Water Sources' and zoom in your neighborhood before the flood plains become visible.

There is a 'locate my address' feature which will put your house on the map.

[lookout123]

hmm, i guess they are all different, but i have been able to get all necessary info from the assessor's site in arizona and i did some work on one in illinois.

[Griff]

The cellar is always one step ahead.

Flood Statement National Weather Service Binghamton NY 1015 AM EDT Mon Apr 04 2005

... A Flood Warning Remains In Effect For The Following Rivers... Chenango River... Susquehanna River... Tioughnioga River... Unadilla River...

Susquehanna River At Unadilla... Moderate Flooding Is Occurring. Moderate Flooding Is Expected To Continue. A Stage Of 13.1 Feet Was Measured At 9 AM Monday. Flood Stage Is 11.0 Feet. The River Will Continue To Fall To Be Below Flood Stage Tuesday.

Susquehanna River At Bainbridge... Moderate Flooding Is Occurring. A Stage Of 20.3 Feet Was Measured At 9 AM Monday. Flood Stage Is 13.0 Feet. The River Crested Earlier This Morning And Is Falling. The River Will Fall Below Flood Stage Wednesday.

Susquehanna River At Conklin... Moderate Flooding Is Occurring. Moderate Flooding Is Expected To Continue. A Stage Of 16.9 Feet Was Measured At 10 AM Monday. Flood Stage Is 11.0 Feet. The River Will Continue To Fall But Remain Above Flood Stage Into At Least Wednesday.

Susquehanna River At Binghamton Washington St... Flood Stage Is 14.0 Feet. The River Is Estimated To Be At 21.2 Feet At 8 AM Monday. The River Will Continue To Fall And Be Below Flood Stage Wednesday.

Susquehanna River At Vestal... Major Flooding Is Occurring. Major Flooding Is Expected To Continue. A Stage Of 28.5 Feet Was Measured At 8 AM Monday. Flood Stage Is 18.0 Feet. The River Will Continue To Fall But Remain Above Flood Stage Into At Least Wednesday.

Susquehanna River At Waverly/Sayre... Moderate Flooding Is Occurring. Moderate Flooding Is Expected To Continue. A Stage Of 20.5 Feet Was Measured At 10 AM Monday. Flood Stage Is 11.0 Feet. The River Will Continue To Fall But Remain Above Flood Stage Into At Least Wednesday.

Chenango River At Sherburne... Minor Flooding Is Occurring. Minor Flooding Is Expected To Continue. A Stage Of 9.0 Feet Was Measured At 9 AM Monday. Flood Stage Is 8.0 Feet. The River Will Continue To Fall And Be Below Flood Stage Early Tuesday.

Chenango River At Greene... Minor Flooding Is Occurring. Minor Flooding Is Expected To Continue. A Stage Of 16.5 Feet Was Measured At 7 AM Monday. Flood Stage Is 13.0 Feet. The River Will Continue To Fall And Be Below Flood Stage Midday Tuesday.

Chenango River At Chenango Forks... Moderate Flooding Is Occurring. Moderate Flooding Is Expected To Continue. A Stage Of 13.1 Feet Was Measured At 7 AM Monday. Flood Stage Is 10.0 Feet. The River Will Continue To Fall And Be Below Flood Stage Wednesday.

Tioughnioga River At Cortland... Moderate Flooding Is Occurring. Moderate Flooding Is Expected To Continue. A Stage Of 11.1 Feet Was Measured At 10 AM Monday. Flood Stage Is 8.0 Feet. The River Will Continue To Fall And Be Below Flood Stage Tuesday Night.

Unadilla River At Rockdale... Minor Flooding Is Occurring. Minor Flooding Is Expected To Continue. A Stage Of 11.3 Feet Was Measured At 9 AM Monday. Flood Stage Is 11.0 Feet. The River Will Continue To Fall And Be Below Flood Stage This Afternoon.

Never Drive Cars Through Flooded Areas!! The Water May Be Too Deep To Allow Safe Passage. Most Deaths That Occur During Flooding Are Related To Vehicles Trying To Cross Flooded Roadways.

Stay Tuned To Developments By Listening To Noaa Weather Radio...

I'm glad everything is down hill from here.

[Tonchi]

richlevy, the "Hundred-year Flood" designation can be misleading. It is perfectly possible to have TWO "hundred-year floods" back to back, and Arizona is a really good place to prove that. The designation also can't take into account what might happen to your property if it is in the path of water from a dam higher above you which is overflowing or gives out because of factors which might not even apply where you are located (such as Auburn in California or various reservoirs and dams above some LA bedroom communities). Several government agencies will have topo maps you can look at if you want to do the research, but title companies and whatever agency approves Building Permits should have plenty of documentation of what is a flood plain and what is not.

[xoxoxoBruce]

If I were buying a house, I'd look at all 100 years to find the safest place.

There's also a 500 year flood plain, Rich.
My house was built in '53. This area(100 year) was inundated in '47(?) and '71, so I must be good for about 175 years.