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Started By
Message
Anybody considering just dropping flood insurance with the rate increases?
Posted on 7/14/22 at 11:22 am
Posted on 7/14/22 at 11:22 am
I'm in flood zone X. Neighborhood has never flooded. I carried flood because it was cheap enough at around $450-550/year +/-. Renewal just jumped to $685 and my agent tells me after the rate increases are done my premium will settle in around $1,350. That's insane to me, and I'm considering just dropping it altogether.
I thought about trying to get an elevation cert. to see if that shaves some $ off the premium. The flood maps show my house is around 13 ft. above sea level and my ground level is probably another 1.5-2 feet above that. But I don't know if that would even put a dent in the premium that's slated to go over 1300.
I guess my only hesitation is how much of a jacked up rate I'd potentially be buying back in at in the future if it ever becomes necessary.
ETA: As I recall, the worst my neighborhood ever got was the entrance road, which dips a bit, retained some water the morning after Katrina. Flood maps show that spot is between 3.8-6 feet over sea level. So we would need another 12+ feet of water over the worst event we've ever had to be in danger. Most of LA is totally effed if that happened.
I thought about trying to get an elevation cert. to see if that shaves some $ off the premium. The flood maps show my house is around 13 ft. above sea level and my ground level is probably another 1.5-2 feet above that. But I don't know if that would even put a dent in the premium that's slated to go over 1300.
I guess my only hesitation is how much of a jacked up rate I'd potentially be buying back in at in the future if it ever becomes necessary.
ETA: As I recall, the worst my neighborhood ever got was the entrance road, which dips a bit, retained some water the morning after Katrina. Flood maps show that spot is between 3.8-6 feet over sea level. So we would need another 12+ feet of water over the worst event we've ever had to be in danger. Most of LA is totally effed if that happened.
This post was edited on 7/14/22 at 11:34 am
22
Posted on 7/14/22 at 11:32 am to Neauxla_Tiger
+1 in that dept, but already have. Dropped it last year. Just no need. Coverage is shite and I'm never gonna flood unless the drains back up. I'm in BR in mid city.
Posted on 7/14/22 at 11:49 am to Neauxla_Tiger
You're sweating an insurance that's going to cost you $19.58 more a month?
Posted on 7/14/22 at 11:54 am to Neauxla_Tiger
I dropped the policy at my old house in 2014.
Won’t do that again.
Won’t do that again.
Posted on 7/14/22 at 12:15 pm to TheWiz
quote:
You're sweating an insurance that's going to cost you $19.58 more a month?
That's the increase for THIS YEAR. Fast forward another 4 years and it's costing me an additional $75/month.
And I probably wouldn't sweat it as much if my homeowner's, Auto, Electric, Grocery, gas and literally everything else wasn't simultaneously going through the roof. Add a Bear market for stocks on top of that and you start re-evaluating what you really need and don't need.
Posted on 7/14/22 at 12:36 pm to Neauxla_Tiger
quote:
Renewal just jumped to $685 and my agent tells me after the rate increases are done my premium will settle in around $1,350.
Same here, a few years ago I paid $365 a year. My neighbor, said her agent told her the rate increases only apply to continuous policies. If you chose not to renew, then renew the following year, you would start with the max total bill.
Posted on 7/14/22 at 12:39 pm to Neauxla_Tiger
I'm sticking with my company for now since the max annual rate increase is 18%. Once my rate goes above $1,000 I'll probably drop. I have a few years of 18% increases before I get there
Posted on 7/14/22 at 12:46 pm to Neauxla_Tiger
quote:
probably wouldn't sweat it as much if my homeowner's, Auto, Electric, Grocery, gas and literally everything else wasn't simultaneously going through the roof.
Fair enough.
quote:
start re-evaluating what you really need and don't need
Don't need it, until you need it. Good luck!
Posted on 7/14/22 at 12:48 pm to Neauxla_Tiger
As soon as I drop flood insurance, we will flood.
Posted on 7/14/22 at 1:15 pm to TheWiz
quote:
Don't need it, until you need it. Good luck!
Yeah I know, I always say the same to others who consider dropping insurance. At some point though, premium increases no longer make financial sense for the coverage they provide. Question is where is that point for everybody? Tripling my premium over 5 years has me wondering.
Posted on 7/14/22 at 1:16 pm to TheWiz
I might keep it along with my South Louisiana earthquake insurance (it’s only $15/month) and the named Winter Blizzard coverage I picked up.
But for real, I cannot understand what FEMA was thinking with these increases. They were getting FREE money from a ton of customers who were very unlikely to flood.
But for real, I cannot understand what FEMA was thinking with these increases. They were getting FREE money from a ton of customers who were very unlikely to flood.
Posted on 7/14/22 at 1:22 pm to Neauxla_Tiger
Even at $1350 a year for 40 years. That puts you around 54k in premium for a policy that gives you 350k in protection every single year living in a shite hole bowl of new orleans protected by levees getting blasted by major hurricanes on an annual basis with heavy flooding potential on any given week basis. You have trouble with this decision dude?
Posted on 7/14/22 at 1:24 pm to Chad504boy
Oh yea frick that, I missed where OP lived in New Orleans. If I'm having to be protected by man made structures, then I'm keeping floor insurance at his quoted $1350 a year.
Posted on 7/14/22 at 1:36 pm to Chad504boy
I'm not in New Orleans. Mandeville/Covington. I'm not relying on levees while being below sea level. That would obviously be a different story.
And to the other poster above me questioning FEMA's decision to do this, I was wondering the same thing. I was perfectly happy handing them $500/year. Wonder how many yearly premiums they lose doing this. It's sort of like a business thinking they need to raise their prices to make more money, but end up losing revenue as more customers shop somewhere else. Sometimes lowering the price brings in more money overall.
And to the other poster above me questioning FEMA's decision to do this, I was wondering the same thing. I was perfectly happy handing them $500/year. Wonder how many yearly premiums they lose doing this. It's sort of like a business thinking they need to raise their prices to make more money, but end up losing revenue as more customers shop somewhere else. Sometimes lowering the price brings in more money overall.
Posted on 7/14/22 at 1:42 pm to Neauxla_Tiger
Have your agent run the quote with higher deductibles. There is also a private market flood program that may be less expensive.
Posted on 7/14/22 at 1:43 pm to Neauxla_Tiger
quote:
I was perfectly happy handing them $500/year. Wonder how many yearly premiums they lose doing this.
Yeah my policy increased 18% this year. That's the max FEMA can increase it in a year. Next year, I expect it to increase another 18%, so forth and so on. Fully expect it with the risk rating 2.0 system.
quote:
considering just dropping flood insurance with the rate increases
I'm getting to this point. At 18' elevation now... Wondering what would have to happen to get that high where I'm at. Sustained storm surge in combination with record rainfall?
There is a point where people accept the risk and become "self insured," whether it be through savings or what have you.
Posted on 7/14/22 at 1:47 pm to Neauxla_Tiger
I don't have it in Mandeville. We didn't even come close to flooding in Ida.
Posted on 7/14/22 at 1:49 pm to Neauxla_Tiger
Your new rates are based on more realistic data than before. Your premium is increasing due to the perceived real risk of you flooding. Your not getting one over them by not paying the extra $600-$800 year to carry insurance.
Posted on 7/14/22 at 2:21 pm to Neauxla_Tiger
My neighborhood has never flooded, but I am a levee breach from no longer having a house/neighborhood; so not renewing will never be a consideration for me. Last renewal was around $560.
Have you reached out to your agent with these details and asked them to ballpark what you may potentially save vs what it would cost for the elevation cert. FYI, in Jeff Parish and I paid $300 for an elevation cert back in March 2022
quote:
I thought about trying to get an elevation cert. to see if that shaves some $ off the premium. The flood maps show my house is around 13 ft. above sea level and my ground level is probably another 1.5-2 feet above that. But I don't know if that would even put a dent in the premium that's slated to go over 1300.
Have you reached out to your agent with these details and asked them to ballpark what you may potentially save vs what it would cost for the elevation cert. FYI, in Jeff Parish and I paid $300 for an elevation cert back in March 2022
This post was edited on 7/14/22 at 2:23 pm
Posted on 7/14/22 at 2:48 pm to Chad504boy
quote:Not completely. Risk 2.0 is also subsidizing less equitable areas. So while you may have the identical risk as what your premium indicated prior, if you live in a wealthy area you premiums may rise to offset the lack of increases for lower equitable areas that have higher risk.
Your new rates are based on more realistic data than before. Your premium is increasing due to the perceived real risk of you flooding. Your not getting one over them by not paying the extra $600-$800 year to carry insurance.
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