[TNLAKEPANDA]

Originally Posted by JourneyOfLife

I have read about some big increase in premium that seemed extremely high.

I was wondering of those news stories were just sensationalizing the cost increases by cherry picking a few houses that may not be typical.

Anybody have any insight into how premiums have increased in florida around the coastal areas?

Flood Ins rates are based on two things...
1. What flood zone you are located in. There are many different zones but the high hazard zones are the most expensive.

2. How high your house is located above or below the BFE (base flood elevation). If you are below the BFE you will be paying a lot more.

New homes must comply with all the flood standards.

[TNLAKEPANDA]

Originally Posted by villagerjack

Risks are the same for primary owners and owners of second homes/investment properties however the rules are not the same. That is unfair.

Where are you getting your information? The rules are the same for everyone who is in the same Flood Zone as far as coverage goes.

[JourneyOfLife]

Some interesting info in this article

Five things the flood insurance fix doesn't fix | Tampa Bay Times

[John_W]

I went home to St. Petersburg for my high school reunion last November. Some of my classmates who live on either Treasure island or St. Pete Beach now pay about $2,000 a year for flood insurance, under the new plan they were told it would go to about $20,000 per year. Most of these homeowners would have to become self insured, meaning no insurance, and would have to just about give it away when they sell. We did some looking while there, and the beach areas had a lot of bargains, $100,000 to $150,000 went a long way.

I just took this off Zillow, it's a 1BR/1BA condo on the beach, asking $116,000. Last sold in 2004 for $142,000.

[JourneyOfLife]

With Condos and HOAs, the obligation might be that the cost of fixing it follow the owner. Not just the unit, but the property in common. If there was no insurance or insurance was inadequate, there might be big special assessments.

I am not sure about Florida, but some states have laws that are intended to protect owners in condo association... Does florida require the association to buy insurance?

I would have to understand the details. If I were considering any property like that I would have a lawyer review it to better understand my exposure to financial obligations over and above the cost of the unit.

[JourneyOfLife]

This is the type of thing I find outrageous!

The practice of high rise, beach front condos fishing, until they found an engineering company that would give them a favorable study to lobby for, in effect, low or no premium.

NBC News:
Three engineers told owner Larry Wireman there was no way the flood map qualified for a change, not on this stretch of the Gulf of Mexico, not in a hurricane-prone community where dozens of buildings were destroyed by the most recent of many storms to blow through the area. "There's no way in hell that's going to happen," one of those engineers, Vince Lucido, said he was told by a firm specializing in coastal engineering.

But a fourth company saw it differently, persuading the Federal Emergency Management Agency to move the line on its flood maps. Turquoise Place Tower I, which had been in the highest-risk flood zone, was now in a low-risk zone, where flood insurance was optional.

Meet the Flood Insurance 'Robin Hood' Who Saves Condo Owners Millions - NBC News



It sure looks like their premium costs are being shifted to other groups and people.


For Average Joes, Fighting FEMA Flood Maps Isn't Easy or Cheap - NBC News




I wonder if the primary people/companies/associations involved will be charged with Fraud? I also wonder if owners, investors, or banks/lenders will end up suing the condo association.

At a minimum FEMA is swept into the spotlight and hopefully will tighten up on the process.

FBI Investigates FEMA Flood Map Changes After NBC News Report - NBC News

[ping]

It's not just those who live near a beach.....they are the ones effected by flood damage, but others who live near ponds or water ways (NEAR not on) who have never been effected by flooding, are now paying hefty flood insurance bills to finance those actually effected. Why did the government take on offering flood insurance when insurance companies dropped the policy cause it wreaked havoc with profits. Now anyone living near so much as a "puddle" has to pay flood insurance at increased rates to try to cover those who's homes have been flooded. My home in MA is a property that has been forced to pay for flood insurance I will never need. If my home got flooded, it would take a tidal wave of huge proportions and I wouldn't need flood insurance, we would be in a disaster area receiving federal funds.

[JourneyOfLife]

Originally Posted by pting

It's not just those who live near a beach.....they are the ones effected by flood damage, but others who live near ponds or water ways (NEAR not on) who have never been effected by flooding, are now paying hefty flood insurance bills to finance those actually effected. Why did the government take on offering flood insurance when insurance companies dropped the policy cause it wreaked havoc with profits. Now anyone living near so much as a "puddle" has to pay flood insurance at increased rates to try to cover those who's homes have been flooded. My home in MA is a property that has been forced to pay for flood insurance I will never need. If my home got flooded, it would take a tidal wave of huge proportions and I wouldn't need flood insurance, we would be in a disaster area receiving federal funds.

Two things:

1) read the wiki link in a previous post for some background. I am sure they intended to fill the void. States do it to.... look at Florida. Good intentions, but perhaps less than perfect implementation.

2) Normal Banks would not lend money anyway if it put them at risk of loss! Plus they would have to hold the paper themselves. They are not fools.

Does the FEMA flood program force people to buy flood insurance?

One other thing... I think you may be making assumptions about risk and the federal funds.