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Brightside Bengal
New Orleans Saints Fan
Uptown
Member since Sep 2007
2390 posts

Question About Flood Insurance Rate Hikes


I just watched an editorial by Clancy Dubose about the Congressional meetings today to delay the rate hikes. My question is not really about the timing or politics of the rate hikes.

Mr. Dubose said that the rate hikes came about after Congress voted to force the flood insurance program to become sustainable, which I agree with.

I know some residents were facing flood insurance rates that would cost $25,000/yr., which does seem ridiculous. But, wouldn't a fiscally conservative person want (in theory) the rates to reflect the property's actual risk, or flood zone?

As a resident of south LA, for personal reasons I obviously want our flood rates to stay as low as possible. But as a fiscal conservative, I feel like we need to pay rates that accurately reflect our risk.

Does anyone feel like we need to rethink support of insuring properties if the risk really would warrant 25k / yr insurance?







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MoreOrLes
LSU Fan
Member since Nov 2008
16520 posts

re: Question About Flood Insurance Rate Hikes


The NFIP exists because the gubbermint said that it was not right for insurance companies to charge based on acturarial rates. The formation of the NFIP essentially meant no competition in the flood insurance industry.

Now that there is no competition, they want to charge base on the actuarial rates.

Also, keep in mind that mortgage companies require flood in the amount to cover their loan. If people would have been able to calculate their monthly note using these new actuarial rate they probably would not have bought.

To change the rules in the middle of the game hardly seems fair.


And none of this takes on the whole notion of levee protection.


Its a cluster F....
but aren't most things the govt dabbles in.


Not to mention the feds also want to tamper with the Mortgage Interest deduction.

Not good times for gulf south real estate ahead IMO



This post was edited on 7/16 at 7:49 pm


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TheDiesel
LSU Fan
Houston via Baton Rouge
Member since Feb 2010
2397 posts
 Online 

re: Question About Flood Insurance Rate Hikes


Just like the mortgage interest rate deduction, the flood insurance rates should be phased out/in.





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eelsuee
LSU Fan
2B+!2B
Member since Oct 2004
3920 posts

re: Question About Flood Insurance Rate Hikes


quote:

But, wouldn't a fiscally conservative person want (in theory) the rates to reflect the property's actual risk, or flood zone?
Yes, it is a form of welfare in its current state. It is true that nobody wants to lose the government programs that benefit them, but it is still hypocritical and liberal to feel that way.






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Paul Allen
USA Fan
Baton Rouge, LA
Member since Nov 2007
26638 posts

re: Question About Flood Insurance Rate Hikes


Self insure is going to be the way to do this if you don't have a mortgage.





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