Flood Insurance - UNREAL

[CatCam]

Today I went to the Flood Insurance Rate meeting today because they now have the updated flood maps. Well, now my flood insurance rates will go from $400/year to a figure that is still unknown BUT it will be approaching the $10,000 mark. Yes, for a house that has NEVER flooded and my Certified Slab elevation is 5' Above Mean Sea Level. This newly passed Biggert-Waters Flood Insurance Reform and Modernization Act of 2012 has essentially made my house worthless......

So, I had this house built in 1996 to all applicable codes. elevations and standards in a very upscale neighborhood....paid the house off in 15 years by working 2 jobs and paying extra on principal..2 tours in Iraq...and two Senators (one from Illinois and one from California) Co-author an Act that makes all my years of hard work worthless. THIS MEASURE WAS VOTED “FOR” BY SENATORS VITTER & LANDRIEU, CONGRESSMAN SCALISE, RICHMOND, LANDRY, FLEMING, ALEXANDER, CASSIDY & BOUSTANY.

How can they do this? My children's inheritance that I've worked hard to secure is gone.

Man, I'm beside myself. Thinking bad thoughts....can't really think straight. Midnight and I can't sleep. ......God help me.

 

[1911Dave]

Where are you located?

 

[Vermiform]

Just wait and see. You can't be the only one affected negatively by this. Wait for the uproar and be ready to jump in and help organize. If you are a religious person, pray on it. It has helped me greatly in times like these.

 

[CatCam]

Where are you located?

In Belle Chasse, about 6 miles past the Naval Air Station.

 

[1911Dave]

Wow thats nuts. I am waiting to see what they do to Laplace once they figure out new mapping. Thankfully we are selling our house this week and going to Mandeville.

 

[Nomad.2nd]

In Belle Chasse, about 6 miles past the Naval Air Station.

I hate to tell you, but you live a few miles from the ocean (Gulf), and right on a river, and ONLY 5 feet up! You've been getting a break for years!
(Flood is backed by FEMA, subsidized by taxes)

THe GOOD NEWS is that your earthquake insurance should be cheap!

 

[CatCam]

How in the Hell can they change all the rules and not grandfather existing homes in? Or at least cap existing homes at some determined rate that is affordable and doesn't drive off potential buyers? $1,500/year is manageable and doesn't make our homes worthless, $8,000-$10,000/year is a deal breaker. For those who have a mortgage you are required to have flood insurance....did they foresee close to a $1,000/month jump in their monthly bill because of flood insurance? Hell No. I wonder if the foreclosures start will our wonderful government step in and help them like they helped all the people a few years back who couldn't pay their notes.

I'm sick to my stomach. I'm still thinking bad thoughts..........

 

[Nomad.2nd]

How in the Hell can they change all the rules and not grandfather existing homes in? Or at least cap existing homes at some determined rate that is affordable and doesn't drive off potential buyers? $1,500/year is manageable and doesn't make our homes worthless, $8,000-$10,000/year is a deal breaker. For those who have a mortgage you are required to have flood insurance....did they foresee close to a $1,000/month jump in their monthly bill because of flood insurance? Hell No. I wonder if the foreclosures start will our wonderful government step in and help them like they helped all the people a few years back who couldn't pay their notes.

I'm sick to my stomach. I'm still thinking bad thoughts..........

A couple things:

1. what I said was true, insurance is based on risk, and you've been getting the equivalent of a rent controlled apartment in NYC for years

2. Relax, I have dabbled on the edge of the industry and they (Industry) doesn't expect it (Getting rid of prefirm etc) to stick... for the reason seen here.

Expect more than a few changes over upcoming months... just hang on and enjoy the ride (Ok, maybe not, but survive it.)

 

[CatCam]

A couple things:

1. what I said was true, insurance is based on risk, and you've been getting the equivalent of a rent controlled apartment in NYC for years

2. Relax, I have dabbled on the edge of the industry and they (Industry) doesn't expect it (Getting rid of prefirm etc) to stick... for the reason seen here.

Expect more than a few changes over upcoming months... just hang on and enjoy the ride (Ok, maybe not, but survive it.)

Thanks Nomad - only positive words I've heard since this meeting. Trust me, If anybody asked me if $400 was ridiculously low, I would agree wholeheartedly -- and I don't have any problem with rate increase, but, increasing to a cost that makes insurance unobtainable for many and makes our homes worthless is crossing the line.

Spoke to neighbors and wondered if a Class Action Suit filed in Federal Court to stop this Act could be an option.

BTW - we've heard NOTHING from our politicians on this. The silence is deafening.

 

[Nomad.2nd]

Thanks Nomad - only positive words I've heard since this meeting. Trust me, If anybody asked me if $400 was ridiculously low, I would agree wholeheartedly -- and I don't have any problem with rate increase, but, increasing to a cost that makes insurance unobtainable for many and makes our homes worthless is crossing the line.

Spoke to neighbors and wondered if a Class Action Suit filed in Federal Court to stop this Act could be an option.

BTW - we've heard NOTHING from our politicians on this. The silence is deafening.

Keep screaming. The people I talked to counted on your outcry to make the changes... (Politicians listen... even if you think they don't)
-When I said relax, I wasn't saying not keep on em!

 

[my-rifle]

I hate to tell you, but you live a few miles from the ocean (Gulf), and right on a river, and ONLY 5 feet up! You've been getting a break for years!
(Flood is backed by FEMA, subsidized by taxes)

THe GOOD NEWS is that your earthquake insurance should be cheap!

You are absolutely right. To the OP, your home is outside the flood protection which ends at Belle Chasse. The people of the United States of America spent $14.5 billion (that's with a "B") to build hurricane flood protection around the greater New Orleans area. That's where the overwhelming amount of property is in southeast Louisiana. I just spent the past seven years building that flood protection system, and I come from the belly of the beast. The United States of America simply doesn't have enough money to protect all of south Louisiana.

The reason you were not grandfathered in is no insurance company would create a plan that grandfathered in homes that are definitely going to flood. The rates for the rest of the region would have to be absurdly high to subsidize your insurance. Look, you got the land for cheap. The reason it was cheap was it's prone to hurricane flooding. Everybody has known that for decades. Jesuit Bend, Braithwaite, Myrtle Grove - all are hurricane speed bumps. That's why I paid over $200,000 for the 50' lot my home is on. It's on high ground inside the flood protection zone. Yours was what? $100,000? And how big is the lot? Now you know why it was so cheap. You probably have a nicer house than I do too.

 

[trout25red]

I agree with $10K/year insurance making a home worthless. I almost bought a home in Braithwaite (spelling) about 5 years ago... until I got the insurance quotes. Home and flood were right at $12/year! That neighborhood went under water with Isaac so I am glad we backed out, but damn that is a lot of insurance money on a $200k house. I feel bad for those who have homes there and want to sell.

 

[my-rifle]

I agree with $10K/year insurance making a home worthless. I almost bought a home in Braithwaite (spelling) about 5 years ago... until I got the insurance quotes. Home and flood were right at $12/year! That neighborhood went under water with Isaac so I am glad we backed out, but damn that is a lot of insurance money on a $200k house. I feel bad for those who have homes there and want to sell.

You know I always laugh when people talk about that $200K house in hurricane alley. Didn't people ever stop to think about why it was so cheap? I mean crap! Didn't they ever look at that 1847 map? Who buys real estate in south Louisiana without looking at the flood history? If not, who's to blame? The bad ole insurance companies or the ignorant shmuck who didn't do his homework when he agreed to plonk down a pile of money to buy a house that was too good to be true?

 

[slogoat]

In Belle Chasse, about 6 miles past the Naval Air Station.

Jesuit bend area? My uncle built a huge house right around there in the 90s and sold it years ago because they saw this coming. Some talk of a levee being built west of them, that would basically ensure the neighborhood gets flooded in the event of a storm. Sucks. Good luck with whatever route you take.

 

[TomTerrific]

A large problem with flood insurance in SLa is people didn't purchase it unless they thought they needed it. The bad risks had it, the good risks didn't. Not good in the insurance world.

No one buys property knowing it floods and no one buys insurance unless there is a good chance their property will flood. What's the rule of thumb? If the property has palmetto plants, it probably floods?

I worked for a company that had major operations in Port Sulphur and Plaquemines Parish. Anything below Belle Chasse is probably going to flood. For insurance purposes, it doesn't matter your absolute elevation. What matters is where you are in the flood plain. I had to have flood insurance in BR. My building was the only one in the town home development in the flood plain. I got a good deal from State Farm. USAA, for once, was much higher for some reason.

I wish you well.

 

[noob]

I was just quoted 4,000 for flood for a house I'm buying in Algiers. They said the house is 1 ft below flood stage. Trying my best to get the measurements redone.

 

[rockmup]

Just wait and see. You can't be the only one affected negatively by this. Wait for the uproar and be ready to jump in and help organize. If you are a religious person, pray on it. It has helped me greatly in times like these.

This is one of the best answers I've seen on here in a long time.

 

[dixiejarhead]

Flood insurance? What's that? My home has flooded three times since it was built. Of course it's a raised home, and with issac it took 4 foot of water. The downstairs is gutted now. I am rebuilding it with concrete block and tile. Next time I'll open the doors and hose it out. No flood insurance on the lower level. 300 per year on the upper.

 

[f350drvr]

I pay $2400 a year for flood, which I thought was bad. Between flood, homeowners, and property tax it's about 10k a year before a penny is paid to the mortgage. If that went up another 7600 I would have to move.

 

[Splat]

I thought I had it bad here in Lafayette. My flood I durance just went from $360 to $460.