No one who lives near the water on the Gulf Coast or the east coast of FLA should be able to buy insurance at any price. If you want to live in such a risky place, foot the rebuilding of your home yourself and don't expect homeowners in Montana to have their premiums go up to cover your losses when the inevitable hurricane blows/washes your house away.
I pay flood insurance because a corner of my property is within the 100-Year-Line. I pay the same rate as some yahoo who builds his entire home 2 feet above sea level in a hurricane zone.
Fact is, the Federal Flood Insurance Program was a huge subsidy to folks living on the Gulf Coast. They were protected from entirely predictable losses at rates far less than any market or risk based insurance company could affort to offer. Homeowners like me have been required by our mortgage companies to foot the bill for these guys and rebuild mansions in Florida, because everybody pays the same.
But Trent Lott did not want to take the gift. He was offered heavily subsidized insurance, but instead chose to put the premium money in his own pocket instead. Dumb move, Trent. You gamed the system one step to far, and now you are left holding the bag.
OK I'll give up my house insurance for wind damage from a hurricane if you will give up your fire insurance against that forest fire that takes yours out. Deal?
Mortgage comapnies mandate insurance coverage. If you have a mortgage, you have to have property insurnce and a separate flood policy if you live in a FEMA designated flood zone. Also, the premiums are regional, not national. Your premium in Montana isn't goin up because of hurricanes in FL. I live in FL and our premiums are going up 50% per year!
I'm sorry, I seldom post. But I think you 'spoke' hastily. We are active duty, and moved to NOLA in July.
Thank God we did have insurance, but it only adds to our pain to read sentiments such as yours. We are still living in a temporary, rented furniture situation. It's a bare bones sort of thing right now. Our lives have definitely had a surreal quality since Aug. 29th. There's life across the USA....football games, music lessons, etc...and then there's us...the Gulf Coast, where the climbing out from the devastation just doesn't seem to end...parallel lives...ones WE are living so that you have the freedom of speech...to bash us.
No one who lives near the water on the Gulf Coast or the east coast of FLA should be able to buy insurance at any price. If you want to live in such a risky place, foot the rebuilding of your home yourself and don't expect homeowners in Montana to have their premiums go up to cover your losses when the inevitable hurricane blows/washes your house away.
AMEN! (from 2223' above mean sea level)
If you like the good people of the Texas and Louisiana Gulf Coast will give up their home with no insurance and move to Montana where they will never be struck by a hurricane.
However, we will also shut down 30% of the domestic oil and gas production and 65% of the nation's refining capacity and you will be paying $15.00 a gallon for gas.
Will That Make You Happy?
So why not just proclaim no one may build a house on any elevation below 100 feet above sea level?
Because that is as ridiculous as saying one cannot build where Tornadoes routinely occur...
Insurance companies shouldn't be doing this dance... pay up, as the people have paid. Allstate and the others will not lose their shirts they have been collecting for years... just settle.
"No one who lives near the water on the Gulf Coast or the east coast of FLA should be able to buy insurance at any price. If you want to live in such a risky place, foot the rebuilding of your home yourself and don't expect homeowners in Montana to have their premiums go up to cover your losses when the inevitable hurricane blows/washes your house away."
I take it you don't live on the Gulf Coast, do you?
Well here's a question, if I shouldn't be allowed to buy insurance, then wouldn't it be fair to not allow people in Montana to buy insurance for fires or earthquakes, and to not allow people in the Midwest to buy insurance for tornadoes
See where I am going with this logic.
To use a federal law to interfere in what is a commercial enterprise (sale of insurance) is in fact an unwarranted governmental intrusion into the market sector, and therefore, as government telling a company what they can or cannot do, would reek of socialism. We don't do that in America (or, well, we're not supposed to)
The rates in MT won't be affected. Property casualty insurance is pretty competitive in most states. insurance companies evaluate their risks based on a number of factors related potentials losses; and these rate are are regionalized, sometimes right down to individual zip codes. What inurance companies will do is adjust their policy coverages, including deductibles, in localized areas based on loss hostories in those areas.
In short, MT policy holders will not be stuck with hight premiums as a result of Katrina or insurance litigation associated with it.
The rates in MT won't be affected. Property casualty insurance is pretty competitive in most states. insurance companies evaluate their risks based on a number of factors related potentials losses; and these rate are are regionalized, sometimes right down to individual zip codes. What inurance companies will do is adjust their policy coverages, including deductibles, in localized areas based on loss hostories in those areas.
In short, MT policy holders will not be stuck with hight premiums as a result of Katrina or insurance litigation associated with it.