I just saw this. Anybody else hear about this?
Altho this may be, or seem to be, intolerable, did anyone see how much the two instances were paying in premiums?
Both would have paid for their claims in about 4 years. Is this normal, if so I don't blame anyone or everyone for screaming they are being overcharged.
Just another case of government bureaucracy screwing up what could be a good program.
And the IRS investigation another federal agency LMAO.
I'll be looking at that map when I get a minute.. I know of at least a few places around here that made me scratch my head when the new maps came out.
You need to read the whole series (links at the bottom of the page).
The new rates these people are paying are unrealistically low, these are repeat flood claim properties that were given LOMA's over the protests of the Local Flood officials.
As for FEMA screwing up a good program, Flood Insurance is sort of like Passenger Rail Service, nobody in the private sector wants to touch it, it has no profit, it's always going to be a money loser.
Yes these rates are unrealistically low but the original rates seemed extremely high to me as well as the rates I have had some homeowners tell me about.
If the private sector were running this at those rates they would be making a profit.
Bear in mind that the FEMA mapping is done with a broad brush using aerial photogrammetry and does not include floor elevations. Owners have the option of a flood elevation survey, which is detailed and on the ground. I doubt that the investigative reporters comprehend the difference.
>Flood Insurance is sort of like Passenger Rail Service, nobody in the private sector wants to touch it, it has no profit, it's always going to be a money loser.
Only because the many/most program participants will not/cannot pay the premium and want to shift the costs to those of us who will never need it.
If the program evaporated tomorrow private insurance companies would offer coverage at a very high price. 5% of those who are below the 100yr mark would actually enroll. Mostly businesses that actually NEED to be in the flood plain for some reason or another.
After the first flood hit the 95% would be on TV screaming for help. If the public could stomach this, highly unlikely, most of those without flood ins. would move out of the flood plain so as not to incur that kind of loss again. Experience is still the best teacher.
Don't feed the animals.
Steve
I posted in the last thread about the investigative reporting regarding FEMA & LOMAs that I would not be the least be surprised to learn that owners were submitting faked, forged, or photoshopped documents to get LOMAs. It seems like it would very simple to do this, I doubt FEMA would question the accuracy of an el. cert. Can't wait to see where this goes.
" Can't wait to see where this goes."
It'll go just about as far as the investigation of the IRS targeting conservative groups did - just another "oops, my bad".
