Harvey insurance question

[Formerly Rockymtnole]

I read today that only about 15% of Harris County homeowners have flood insurance, and those that do are capped at $250k or so.

So what happens now? Where do the funds come to rebuild?

 

[GoNolesTX]

I'm scared the answer will be "north on 45." Just like after Katrina, the answer was "west on 10."

 

[OrlandNole]

After the flood of 2010 here in Nashville, FEMA went around and cut checks to property owners. I don't think it came close to covering all of the costs. I know one person that got a check for $35K, but his downstairs was a total loss.

 

[FSUTribe76]

I read today that only about 15% of Harris County homeowners have flood insurance, and those that do are capped at $250k or so.

So what happens now? Where do the funds come to rebuild?

They're just going to pull themselves up by their bootstraps. That's what they told the poor Louisianans, Mississippians and New Yorkers when they were in need.

Just kidding, they're already begging for that sweet sweet Federal cashola they tried to deny others.

 

[DFSNOLE]

I don't have flood insurance because I'm in a flood zone X and it's not required. I wonder how many of those who are uninsured are in a similar situation.

 

[FSUTribe76]

I don't have flood insurance because I'm in a flood zone X and it's not required. I wonder how many of those who are uninsured are in a similar situation.

From what I read there was no requirement period, just whomever was smart enough to get it.

 

[NDallasRuss]

They're just going to pull themselves up by their bootstraps. That's what they told the poor Louisianans, Mississippians and New Yorkers when they were in need.

Just kidding, they're already begging for that sweet sweet Federal cashola they tried to deny others.

Yes, you don't like Texas. We get it.

 

[4everFSU]

I lived in a non flood zone and I bought flood insurance any way, just to be on the safe side.

 

[DFSNOLE]

From what I read there was no requirement period, just whomever was smart enough to get it.

I would think lenders would require flood insurance for those in FEMA designated flood zones.

 

[OrlandNole]

I would think lenders would require flood insurance for those in FEMA designated flood zones.

Agreed. I think Tribe may be referring to the many people who are not in a designate flood zone and still got flooded.

 

[Hopkins Medicine]

I'm scared the answer will be "north on 45." Just like after Katrina, the answer was "west on 10."

I don't think there will be a massive migration to DFW; Austin and San Antonio are much closer and many would argue that Austin is a much nicer area than DFW

 

[JohnnieHolmesNole]

For the People.

 

[NDallasRuss]

...and many would argue that Austin is a much nicer area than DFW

Just the hippies.

 

[F4Gary]

Wouldn't flood insurance be pretty cheap if you aren't in a "flood" zone?

 

[coloradonoles]

From what I read there was no requirement period, just whomever was smart enough to get it.

If you live in a high flood risk zone (basically anything in a 100 year flood zone) and have a mortgage you are required by law to have flood insurance.

For someone who seemingly knows everything about everything you are strikingly ignorant on this subject.

Not sure what your problem has been recently but this snarkiness is unappealing at best .

 

[RangerNole]

Can't speak for Texas but in HHI we were told too bad so sad. Brother in law wasn't required to have flood insurance since he wasn't in a designated flood zone. He didn't flood but the insurance company said the damage was due to flooding and not the 4 trees on his roof that put huge holes in roof. He is still fighting the insurance companies and has a tarp on his roof; and I know a bunch of people in the same situation. We got hit 10 months ago. Basically insurance companies and the feds are useless. Insurance companies are only focused on saying NO and the feds require jumping through so many hoops you would need to quit your job to get everything done. The best thing to do is blow your house up so there are no questions about your level of damage. You also get to deal with all the companies that come in ready to do work for triple the normal price. I am sure some insurance industry folks will disagree; all I have seen is a lot of NO and low ball damage estimates

 

[montconole]

They're just going to pull themselves up by their bootstraps. That's what they told the poor Louisianans, Mississippians and New Yorkers when they were in need.

Just kidding, they're already begging for that sweet sweet Federal cashola they tried to deny others.

Denied Sandy because of the billions of BS pork that was tossed into the bill.

It will happen with this emergency bill as well. Politics, for the good of the people.

 

[IcelandNole]

If you live in zone X flood insurance is relatively inexpensive. Everyone should buy this just in case. In Katrina and other recent major rain events, flooding occured in areas that have Never flooded before.

For those without flood insurance many may qualify for some type of Individual Assistance from FEMA along with low interest SBA loans.

However Congress and the President can change the rules with a stroke of a pen.

 

[osceola63]

I would think lenders would require flood insurance for those in FEMA designated flood zones.

We ALL live in a flood zone but not everybody lives in a special hazard zone. People living in special hazard zones are required to carry flood insurance.

And unless you are purchasing a new home or you are refinancing and the lender requires it, there is a 30 day wait for flood insurance.

 

[osceola63]

Wouldn't flood insurance be pretty cheap if you aren't in a "flood" zone?

In many cases people living in flood zone X will pay as little as $300 per year for flood insurance

 

[seminole97]

In many cases people living in flood zone X will pay as little as $300 per year for flood insurance

That's 20 Heineken twelve packs!

 

[CobNole]

I've had flood insurance at every house I've ever owned. It's worth it.

 

[itsjustme0770]

I don't have flood insurance because I'm in a flood zone X and it's not required. I wonder how many of those who are uninsured are in a similar situation.

The answer is most.

 

[itsjustme0770]

Can't speak for Texas but in HHI we were told too bad so sad. Brother in law wasn't required to have flood insurance since he wasn't in a designated flood zone. He didn't flood but the insurance company said the damage was due to flooding and not the 4 trees on his roof that put huge holes in roof. He is still fighting the insurance companies and has a tarp on his roof; and I know a bunch of people in the same situation. We got hit 10 months ago. Basically insurance companies and the feds are useless. Insurance companies are only focused on saying NO and the feds require jumping through so many hoops you would need to quit your job to get everything done. The best thing to do is blow your house up so there are no questions about your level of damage. You also get to deal with all the companies that come in ready to do work for triple the normal price. I am sure some insurance industry folks will disagree; all I have seen is a lot of NO and low ball damage estimates

Ranger speaks the truth. And there is a new law that goes into effect on 9/1 that makes claims filed after even harder to pursue against insurance companies. We've been trying to encourage anyone who can to notify their ins. co. of the claim in advance of 9/1 to preserve a chance at fighting. Google HB 1774 and you'll learn all about it. Legislature sold these folks down the river.

 

[FSUTribe76]

If you live in a high flood risk zone (basically anything in a 100 year flood zone) and have a mortgage you are required by law to have flood insurance.

For someone who seemingly knows everything about everything you are strikingly ignorant on this subject.

Not sure what your problem has been recently but this snarkiness is unappealing at best .

I never claimed to be an expert in insurance law merely recounting what I read in news coverage on the subject. Not "fake news", sometimes journalists get the facts wrong and misinformation is inadvertently read. Or perhaps they said Houston doesn't require it and I assumed they were also factoring in state and federal laws and rules.

Also my problem is bears. Those furry serial killers have had it too good for too long.

 

[FSUTribe76]

Yes, you don't like Texas. We get it.

Texas is fine except for all of the Texans polluting it.

 

[Noleguy06]

In a Zone X .2% shot of flood here in North Phoenix and they wanted $60 a month for Flood Insurance capped at $250,000. Yea right.

 

[noleclone2]

There will be many many many people in Houston who have significant damage who had no flood insurance because they lived in areas not deemed risky enough to require. Very sad situation really given the uniqueness of the storm (greatest rain event in our nation's history on top of fourth largest city). People who never in a million years thought their houses could flood and yet they did. I feel very bad for those people and hope the nation through a mix of private and public dollars can find a way to make things right again. The true scope of 160 billion dollars of devastation won't be apparent until the water recedes. I would also brace yourself for premium hikes. The insurance companies are going to be freaking out.

 

[dmm5157]

Flood insurance rates, fees, etc are all controlled by NFIP. You cannot just add flood insurance, there's a process and that often includes getting an elevation certificate. Fees, rates ,etc can all change from year to year, and the rates are going up quickly to offset losses from huge flood events like this one. Thoroughly expect rates to jump up after Harvey.

I personally removed flood insurance from my rental house and got a Letter of Map Amendment (LOMA) to say my house was no longer in the floodplain so I wasn't required to carry the insurance from my mortgage. I previously already knew that my house wasn't in a floodplain, but the insurance was so cheap at the time that I went ahead and left it on for the peace of mind. My insurance went up overnight about $600/yr because it was a rental house and NFIP enacted a fee if you do not live in the residence being insured.

There are a lot of things that go along with getting flood insurance. For instance, if you actually are in a flood zone and you get flooded, you likely will not just be allowed to repair your home. You will have to improve your home (usually through elevation) so lowest finished floor is above the based flood elevation in the area. This can be hundreds of thousands of dollars, depending on the existing foundation, etc. Slab on Grade is the most expensive type of home to elevate as well.

 

[Noleguy06]

There will be many many many people in Houston who have significant damage who had no flood insurance because they lived in areas not deemed risky enough to require. Very sad situation really given the uniqueness of the storm (greatest rain event in our nation's history on top of fourth largest city). People who never in a million years thought their houses could flood and yet they did. I feel very bad for those people and hope the nation through a mix of private and public dollars can find a way to make things right again. The true scope of 160 billion dollars of devastation won't be apparent until the water recedes. I would also brace yourself for premium hikes. The insurance companies are going to be freaking out.

Work as a Commercial Underwriter for an Excess & Surplus Insurance company....

We are definitely not freaking out. Sure we are going to pay a millions of dollars in claims for property damage on buildings due to wind/hail but most of these companies (especially the primary carriers like State Farm, All State, etc..) have so much money setup in their rainy day fund and from their great loss ratio's from the previous decade. We've had internal discussions regarding Harvey and honestly we would need like 3 Harvey's within a few years to really freak out the insurance markets.

 

[GoNolesTX]

I don't think there will be a massive migration to DFW; Austin and San Antonio are much closer and many would argue that Austin is a much nicer area than DFW

Of SAT or ATX, I think SAT would be more rational. More land for development and a little more desert climate. ATX is awful to try to navigate on a daily basis. The assertion of DFW initially is that these folks might just want to get as far away from flooding potential from hurricanes/tropical storms as possible. This is also the 3rd year in a row that Houston has gone through catastrophic flooding. These folks have got to be tired of it and ready to get as far north as possible.

 

[dmm5157]

Of SAT or ATX, I think SAT would be more rational. More land for development and a little more desert climate. ATX is awful to try to navigate on a daily basis. The assertion of DFW initially is that these folks might just want to get as far away from flooding potential from hurricanes/tropical storms as possible. This is also the 3rd year in a row that Houston has gone through catastrophic flooding. These folks have got to be tired of it and ready to get as far north as possible.

Only problem is that San Antonio does flood. It's usually flash flooding, but it's function of the topography. Less of an issue if you stay on the northside of town where it's much higher in the hills.

 

[Formerly Rockymtnole]

This is also the 3rd year in a row that Houston has gone through catastrophic flooding. These folks have got to be tired of it and ready to get as far north as possible.

Not many cities with cheaper housing than Houston though. How many could really afford to leave jobs to move to a more expensive locale?

 

[Fijimn]

The sun is shinning today. Never been happier seeing the sun rise. My area got a ton of rain, but never flooded. The stores are still packed, probably won't be until this weekend that some normalcy returns.

 

[GoNolesTX]

Only problem is that San Antonio does flood. It's usually flash flooding, but it's function of the topography. Less of an issue if you stay on the northside of town where it's much higher in the hills.

Flash flooding and habitual catastrophic flooding... there's also Comal, Hays and Guadalupe Counties that have been "developing" for over a decade.

 

[GoNolesTX]

Not many cities with cheaper housing than Houston though. How many could really afford to leave jobs to move to a more expensive locale?

Not all of DFW is a more expensive locale than Houston. Mid-cities, south Dallas, some pockets of FTW, SE Collin County/far NE Dallas County near Rockwall/Royse City... affordable and near major thoroughfares to get to jobs. The jobs that you speak of in Houston may not really be there soon. The commercial ways and means in this area is definitely setting up for a very large hub atmosphere, more so than the one that already exists.

 

[Bill From Tampa]

I don't think there will be a massive migration to DFW; Austin and San Antonio are much closer and many would argue that Austin is a much nicer area than DFW

Nothing wrong with Austin, but we prefer DFW.

 

[bryanscho]

Flood insurance rates, fees, etc are all controlled by NFIP. You cannot just add flood insurance, there's a process and that often includes getting an elevation certificate. Fees, rates ,etc can all change from year to year, and the rates are going up quickly to offset losses from huge flood events like this one. Thoroughly expect rates to jump up after Harvey.

I personally removed flood insurance from my rental house and got a Letter of Map Amendment (LOMA) to say my house was no longer in the floodplain so I wasn't required to carry the insurance from my mortgage. I previously already knew that my house wasn't in a floodplain, but the insurance was so cheap at the time that I went ahead and left it on for the peace of mind. My insurance went up overnight about $600/yr because it was a rental house and NFIP enacted a fee if you do not live in the residence being insured.

There are a lot of things that go along with getting flood insurance. For instance, if you actually are in a flood zone and you get flooded, you likely will not just be allowed to repair your home. You will have to improve your home (usually through elevation) so lowest finished floor is above the based flood elevation in the area. This can be hundreds of thousands of dollars, depending on the existing foundation, etc. Slab on Grade is the most expensive type of home to elevate as well.

Improving your home isn't a NFIP requirement. That's left up to building codes. Unfortunately, TX is one of the worst states in the country in enforcing them scoring a 28 out of 100. NFIP is facing a $25 billion deficit. You are correct too in that premiums will go up. They have to.

 

[dmm5157]

Improving your home isn't a NFIP requirement. That's left up to building codes. Unfortunately, TX is one of the worst states in the country in enforcing them scoring a 28 out of 100. NFIP is facing a $25 billion deficit. You are correct too in that premiums will go up. They have to.

While the specific rules are not enforced by NFIP, improvement is often required in conjunction with rules established by your local building official. Substantial improvement or structures that are deemed to be substantially damaged will require compliance with latest base flood elevation, if your home is located within a floodplain. Of note, the flood maps are always subject to change. The effort is to reduce the number of repeated claims, although they still happen.

The rules are always changing and it can be frustrating for homeowners to keep up with.

 

[gwgwi]

Wouldn't flood insurance be pretty cheap if you aren't in a "flood" zone?

I live in a flood zone and it's pretty reasonable considering.