OT - Why live on coast when hurricanes come?

[GregDoug]

With the 1-year point of Katrina is now, I was speaking to a friend of mine who feels that if people build on a coast and get hit by property damage during the storm and does not have insurance, then they are just assuming the risk. I would like to see how others feel (but not to the point of a fight and I assume this is a hot topic). Should the federal government pay billions (77 billion so far) to repair private property when people built where they know would get hit by severe storms at times? Here in FL, we all take a risk to live here and buy property but protect that cost with insurance for wind and water damage. If we do not have or can not get insurance, and if we still remain here, why should the government provide welfare for us when the storm comes in. Well, what do you think... remember, we all must remain logical in the debate and discussion and remain polite

Also, for those who try to stay during an evac., what level storm would you leave with no delay ...level 4... or 5... or what..

 

[drives300]

I agree that it is stupid to live on the coast or flood zone with no insurance..
Alot of insurance companies have pulled out of florida , which I think should be illegal. I do not think they should be allowed to discriminate on who they insure, but they have a very powerful lobby in congress which is why they get their way and are so corrupt. If they loose money on us it should balance out with more profitable areas tha dont have as much damage. Although I agree our premiums should be higher the ability to refuse policies is just not right.
If i lived waterfront I would evac with any hurricane. Inland but still coastal I worry about anything 3 or greater.

 

[tangwang]

Government? it is every policy holder in the state that pays for "citizens insurance", which is for people who the regualr insurance companies refuse to insure. Yep, you are being subsidised to pay for it. That is what is rediculous, IMO...




Matt

 

[LauraCline]

Great OT thread lisaandmikefamil, I'm interested in everyone's opinion on this one. Not to make things too heated but, I think that people who choose to live in flood-prone and coastal areas should bear the full costs of that choice - insured or not. Not only should the government not pay to rebuild private property, my insurance rates shouldn't be almost unaffordable and possibly unavailable because some people choose to keep rebuilding in areas where their homes are guaranteed to get destroyed. I made the choice to live in a less flood-prone area and should not be forced to pay for those who make a different choice.

I would not live in a mandatory evacuation zone because to me, that defeats the idea of your home as a safe haven. We don't evacuate at all for various reasons, no matter the storm level.

 

[triggerfish1976]

A few years ago I chose to buy an older house (fixer upper) and I was forced to go with Citizens Insurance because it is a wood frame house. Last year my premium was $1800/year. I got an equity loan on the house to do some remodeling and due to the crazy house values it was appraised for three times what I paid for it three years ago. The insurance company was of course notified of the new appraised value so my insurance is now $5500/year. They doubled it to $3600 just because of the revised value and then added another 50% for the hurricane increase that everyone else got. We should have just sold the house and sat on the money for a year and then bought a newer house. Oh well.
My wife and I are stuck having to use Citizens insurance and have no other options. We live to close to the water to not have insurance so I am forced to pay these outragous premiums to a government funded insurance company. I deffinately think this is unfair and feel like we are getting taken advantage of and having to pay for all of the money that has been shelled out for past hurricane damage costs.

 

[HotReeferSRT4]

Live on the coast because thats where all of the good fish stores are. Everyone knows thats the real answer. Ha.

 

[GregDoug]

Trigger, Why do you live so close to the ocean though if the cost is way to high? I do not mean the questions to be judgmental, so please do not read them that way. I wish my house would become worth 3x what its worth now. I think the question people would ask is why besides the obvious view would anyone build within a mile of the ocean in FL knowing that within a 10 year period there is a good chance of a severe storm causing damage (not to mention life). Should people who live within a few miles of the ocean bare all the cost of insurance and or damage? Why is it unfair that you pay 5500 per year since you choose to live near the ocean... who else should pay to insure the house and why should insurance companies spread the risk over all the policies?

 

[markandkristen]

i dont think anybody on here would knowingly buy a tank that has a crack in the bottom. knowing it might bust.

i think the same is with the insurance company. why would they insure something that they knowlingly will have a big loss on it..

i think if your going to buy on the coast then be sure your holding your stupid sign as you sign the papers.. im just kidding...

 

[triggerfish1976]

I understand your reasoning to a point and I am not asking for any pity. I did knowingly buy a house near the water but I still think it is rediculous to increase my insurance premiums 3 fold when my house was only worth $90,000 two years ago. I know several other people who have newer much nicer homes just as close to the water who pay 1/3 of what I pay for insurance through private insurers.
The "stupid" decision on my end was not to buy a house close to the water but to buy a very old house close to the water that no one wants to insure but the gov't.

 

[markandkristen]

Triggerfish.
all jokes aside
seriously man thats awful..
i cannot imagine your frustraion.
i think its like the gas prices and other stuff ...
somebodys making money and its not me..

its like my father said ... i know they have to make money but do they have to do it all off one person..

 

[triggerfish1976]

I guess I really shouldn't complain to much given the amount of money I spend on this hobby. I think I am just upset that the insurance increase is taking away money I could spend on my tank. This is a sickness.

 

[largodon]

Catastrophes are everywhere

Catastrophes are everywhere

There are major disasters that can happen anyhere. Inland areas suffer from major forest fires most every year, Tornadoes hit the central plains and cause problems. Earthquakes on the west coast (although not very frequent, do much more damage then a hurricane).
No matter where you live there is something that happens more often then other places.

I live on the water (canal) because I enjoy to boat and like the moderation of temperature that comes with it. My house has never had hurricane damage (built in 61) - so I don't see myself living where someone shouldn't live. however my house is a block house with shutters- it is built for living in a hurricane area.

I do think insurance rating should be more subjective to the property then it is now- currently it is based on your zip code and age of the home. I would like to see them add geographical layouts per house, to increase premium for those who are the not in protected areas (ie houses that line the outside of a development where the wind hits the roof as the first wind break)- Work brings me out to Orlando and after charlie it was amazing to see all the new homes that lined the developments with the blue tarps on them- 1 house in they were fine, but the first line all had blue tarps...

but don't get me started...

 

[GregDoug]

Largoden, you make a good point. Maybe the answer is that houses should be built based on the environment. I would never live in the CA area of the country becuase a huge earthquake line runs in the area, which at some time will occur.

If Tampa was hit by a level 4 or 5 and there was a 2 day warning before it hit, how many people do you think would still remain and how much in damage would you guess would occur.. would it be equal to new orleans or even greater?

 

[glyle41]

I live on the coast also and live in an older home also forced to be insured by Citizens they just jacked my escrow payments another 125 month on my house payment I pay more for taxes and insurance than I do on my mortgage but that is the price I am willing to pay

 

[triggerfish1976]

I think that the entire state of Florida is at risk no matter where you live. The way I look at it is if I am going to live down here and endure the climate I mine as well live near the coast.
Two years ago when the hurricane hit Punta Gorda several people from my work evacuated to Orlando where they thought that it was going to be safe. I stayed in my house and didn't have any issues but the hotel they all went to in Orlando had an entire wall taken off, 90% of the cars in the parking lot were damaged and they were all forced to cram into a conference room for 6 hours to ride out the storm. So pretty much everyone is at some sort of risk.

 

[moongoddesss007]

it seems that insurance companies should send out a complimentary jar of vasoline with every new bill! i live in a 1938 home that also has tripled in value since my wife and i bought it and so far my insurance has only went up 500 due to the storms.

 

[BlitzK]

<a href=showthread.php?s=&postid=8036276#post8036276 target=_blank>Originally posted</a> by moongoddesss007
it seems that insurance companies should send out a complimentary jar of vasoline with every new bill! i live in a 1938 home that also has tripled in value since my wife and i bought it and so far my insurance has only went up 500 due to the storms.

Correct, but they need to make it a jumbo size jar for all of the... umm "work"... they're doing!

 

[bklinefelter]

You could argue the point this way. Why would the goverment pay for someone to live if they are unwilling or unable to work? Its called welfare. We are a civilized society that takes care of each other. I agree, it is very upsetting when people take advantage of the system for personal gain. However, that is what we do as a caring people. And just so everyone doesn't think I haven't been hit hard by the insurance problems, my home owners insurance more than tripled when we were droped and had to switch to citizens.

 

[GregDoug]

I want to buy a house that doubles in value... how are you all finding these houses? Is real estate still increasing rapidly or was it because of the past few years?

 

[LauraCline]

" think that the entire state of Florida is at risk no matter where you live. "

Yeah but, you've got to admit that house built a few hundred feet off the beach is alot more risky than one built inland and out of known flood zones. This is the reason insurance rates should be higher in higher risk areas. Some homes are practically guaranteed to have damage/loss at some point and the insurance company is trying to get as much as they can from policy holders before that happens. The problem is that the insurance companies make more money than I can even imagine (check it out, they are the largest institutional investors) yet, when needed they don't want to pay any of it back (even committing fraud to do so in some cases). We all understand capitalism and want the insurance company to make some money but, the purpose of insurance is to cover policyholders against loss not make the insurance companies exhorbitantly wealthy.

The other thing that gets me is that our house is 20 years old, block, inland and not on a known flood plain, and has never had a homeowner's claim of any kind. When we bought the house almost 4 years ago, my HOI was not quite $800/yr. It's nearly triple that now and who knows how high it will be when I get the renewal for November. We are not paying for our level of risk, we are paying more partly because people keep insisting on living and rebuilding in areas where losses occur.

That being said, since it is the one year anniversary today I would just like to say that my heart still goes out to the folks on the Gulf Coast affected by Katrina. Just thinking of how badly they have and are suffering brings tears to my eyes even now. They are in my thoughts and prayers. Between working for Hilton and then volunteering to field helpline calls for victims, some of the stories I've heard are absolutely gut wrenching.