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Neauxla_Tiger
LSU Fan
Member since Feb 2015
1616 posts

Anybody considering just dropping flood insurance with the rate increases?

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.
This post was edited on 7/14 at 11:34 am


Broken Ear Glen
LSU Fan
Baton Roog
Member since Mar 2010
1267 posts

+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.


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64
TheWiz
LSU Fan
Third World, LA
Member since Aug 2007
11429 posts

You're sweating an insurance that's going to cost you $19.58 more a month?


OysterPoBoy
USA Fan
City of St. George
Member since Jul 2013
28971 posts

I dropped the policy at my old house in 2014.

Won’t do that again.


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110
Neauxla_Tiger
LSU Fan
Member since Feb 2015
1616 posts

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.


TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
38893 posts

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.


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50
TigerTatorTots
LSU Fan
The Safeshore
Member since Jul 2009
79789 posts

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


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50
TheWiz
LSU Fan
Third World, LA
Member since Aug 2007
11429 posts

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!


KillTheGophers
Yale Fan
Member since Jan 2016
5600 posts

As soon as I drop flood insurance, we will flood.



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170
Neauxla_Tiger
LSU Fan
Member since Feb 2015
1616 posts

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.


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50
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LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
3376 posts

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.


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210
Chad504boy
4 posts
Member since Feb 2005
155665 posts

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?


TigerTatorTots
LSU Fan
The Safeshore
Member since Jul 2009
79789 posts

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.


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150
Neauxla_Tiger
LSU Fan
Member since Feb 2015
1616 posts

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.


tigerrocket
LSU Fan
Member since Aug 2008
152 posts

Have your agent run the quote with higher deductibles. There is also a private market flood program that may be less expensive.


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10
meeple
USA Fan
Carcassonne
Member since May 2011
8005 posts

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.


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GEAUXT
USA Fan
Member since Nov 2007
28215 posts

I don't have it in Mandeville. We didn't even come close to flooding in Ida.


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Chad504boy
4 posts
Member since Feb 2005
155665 posts

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.


Weekend Warrior79
LSU Fan
Member since Aug 2014
11798 posts

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.

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 at 2:23 pm


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TigerTatorTots
LSU Fan
The Safeshore
Member since Jul 2009
79789 posts

quote:

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.
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.


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