Flood insurance rate increases

My dad just got his and the samething. He called his ins company and they got in touch with FEMA. They said it was a mistake. Apparently letters were suppose to go out asking to confirm if it is your primary residence. My dad never got his. So FEMA defaulted to it not being his primary residence. Which adds $250 to your flood ins. So they are resending his letter so he can confirm its his primary residence. So it sounds like that this was a glitch in the FEMA system and none of the verification letters got sent out. So I would call your agent to have them get in touch with FEMA.

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I did get that letter and when i called my allstate agent they said that they took care of it

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Probably because you have Auto insurance with Allstate. Auto insurance is a form of proof FEMA does accept.

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Just paid my flood insurance and it just about doubled from last years bill. Went from $375 to $655 Just wanted to see if everyone else is experiencing a similar rate increase.

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One of the many hidden taxes from our Federal Government. It was a racket when I paid. When they last expanded the flood area my neighbor was considered out of the flood plain and I was in. My house was clearly higher than his. I figured they must need more people paying so all those people could live around New Orleans.

It is a tax plain and simple. It is also a subsidy for folks to be able to live in a flood prone area.

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It's not a tax

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It is a tax to people who will never flood. I paid it to live in a place that will literally never flood. FEMA even thought my neighbor who appeared lower than me wouldn't flood.

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If the Federal Flood was not available, I believe flood insurance would be even more expensive through private companies.

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People probably wouldn't live in flooding areas and force the taxpayers to pay for it via FEMA and subsidies.

You can blame your increases at least in part to FEMA now efforting to settle all remaining Sandy claims in litigation for remaining policy limits. Oh and they're also to reopen ALL 140,000+ closed claims to re-review them in the event the insured(s) think they weren't paid enough. Why? Because New Yorkers and New Jersians and their shore houses are special. Certainly more special than Katrina claimants whose primary residence was sitting in water for weeks, not 24-48 hrs.

fricking joke. NFIP being a clusterfrick is right.

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The government created a system where you do not have a choice unless you pay 100% cash for your house.

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Just because a bank requires you to have insurance to take out a mortgage, doesn't make flood insurance a tax. If you don't want to pay flood insurance, move out of a flood zone or take out your mortgage from a bank that is not FDIC protected.

ETA: From the NFIP Website...

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If the property is not in a high-risk area, but instead in a moderate-to-low risk area, federal law does not require flood insurance; however, a lender can still require it. In fact, nearly 1 in 4 NFIP flood claims occur in these moderate- to low-risk areas! Note that if during the life of the loan the maps are revised and the property is now in the high-risk area, your lender will notify you that you must purchase flood insurance.

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I hope you understand this is a subsidy for people to live in disaster prone areas.

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That is exactly right. That is how insurance works. Knocking on wood, I have not had an auto claim with state farm since beginning to drive. I am subsidizing all other drivers who do have claims. That is, by design, how insurance works. The problem is that the values that lay in coastal/flood areas are so high, nobody wants to ensure it. I just wonder what the landscape of business would be in those areas without the fed backing up loans for property.

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I hope you understand this is a subsidy for people to live in disaster prone areas. That is all it is. Republicans/Red State Louisiana highly support it but don't realize it is a subsidy. Those same people scream about handouts to everyone else. I also hope everyone's rate increases enough to where taxpayers do not have to foot the bill for people who choose to live in flood prone areas.

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Most of those flood prone areas are not in the south, and if the NFIP didn't exist you would have no economic activity along the entire coastline of most major rivers in the US.

The NFIP began due to frequent flooding in Midwestern states from the Ohio and Mississippi rivers like Wisconsin, Illinois and Iowa, and not coastal flooding.

The primary function of flood insurance is to facilitate commerce where economic investment would not otherwise occur, like within 50-100 miles of a major river.

FYI, as an insurance program, the NFIP has been profitable over its existence (premiums collected exceed claims paid) but the annual surpluses have been plundered by the Treasury to waste on other programs (similar to the Social Security trust fund).

We citizens now get to replace the stolen surplus.

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Chad504boy

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You do understand every year there are major floods in areas all across country that "haven't flood in 200 years etc" ...

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He's not interested in the responses. Or reality either it seems. At least judging by what he thinks of the NFIP.

I guess FHA and USDA's Rural Development funds were created to be handouts as well.