Posted on 09/24/2021 11:19:53 AM PDT by Theoria
Florida’s version of the American dream, which holds that even people of relatively modest means can aspire to live near the water, depends on a few crucial components: sugar white beaches, soft ocean breezes and federal flood insurance that is heavily subsidized.
But starting Oct. 1, communities in Florida and elsewhere around the country will see those subsidies begin to disappear in a nationwide experiment in trying to adapt to climate change: Forcing Americans to pay something closer to the real cost of their flood risk, which is rising as the planet warms.
While the program also covers homes around the country, the pain will be most acutely felt in coastal communities. For the first time, the new rates will also take into account the size of a home, so that large houses by the ocean could see an especially big jump in rates.
Federal officials say the goal is fairness — and also getting homeowners to understand the extent of the risk they face, and perhaps move to safer ground, reducing the human and financial toll of disasters.
“Subsidized insurance has been critical for supporting coastal real estate markets,” said Benjamin Keys, a professor at the University of Pennsylvania’s Wharton School. Removing that subsidy, he said, is likely to affect where Americans build houses and how much people will pay for them. “It’s going to require a major rethink about coastal living.”
The Biden administration’s new approach threatens home values, perhaps nowhere as intensely as Florida, a state particularly exposed to rising seas and worsening hurricanes. In some parts of the state, the cost of flood insurance will eventually increase tenfold, according to data obtained by The New York Times.
(Excerpt) Read more at nytimes.com ...
This isn’t just about “water front” properties. It is about anyone living in a FEMA designated flood zone.
If you do and “choose” to have flood insurance,its going up
A guy I know bought a house on Clearwater Beach around 2005.
He bought a place across the street from the Gulf for $400K.
Even back then I could not believe how expensive it was just for the flood insurance, wind insurance, hazard insurance and even auto.
“and elsewhere around the country”
The little town of Manchester, Ohio near me died after the feds refused to subsidize the town’s flood insurance after the flood in ‘96. It makes sense. A 30 year flood gets Manchester. 13, 37, 64, 96 and counting.
what if your about 20’ above the tidal crick ?
We were down on St. Pete beach.
Can we pay the premiums? Sure. But the wasted money was getting harder to justify, since we retired, we were only down there in the winter. We lived in the area since 1985, bought the home on the water in 2000.
If you are within a mile of the water you are screwed.
A huge amount of government spending is subsidies for big corporations. Capitalism is almost dead in America. Banks and Wall Street investors are bailed put, big Pharma receives billions in research money then charges Americans the highest drug prices in the world. Automotive industry receives subsidies for electric vehicles and bailouts. Defense industry shamelessly steals. Big agriculture gets billions in farm subsidies. Then some of it comes back to politicians in campaign contributions, speaking fees, book deals, jobs for relatives, and board seats after retirement
Is that the one that’s erupting now?
Well, just what did God say about flooding?
Rainbow.
He won’t do flooding again.
But . . .
Earthquakes, fires, and other stuff . . .
It rises that much?
How many feet would the water be above the ground level there?
Its not just the water- its the wind which causes most of the damage which is covered. Most home policies in NY don’t cover water damage from a hurricane. There are also hurricane deductibles in the five boroughs/LI and most of westchester. Deducts are 2% to 5% of the dwelling rather than $500 or $1000
I wish I had known this was going to happen before I bought ocean-front property in Arizona from George Strait. Should have known the price was too good to be true.
I can remember when the Texas coast was mostly cheap cement block one bedroom one bath with a window AC. Could be rebuilt in a month with little skill. Now it’s several $100k and going up. If you want to build expensive fine but don’t ask me to subsidize or pay for it someway .
Thanks for the mention.
I don’t think there’s much that could be done for existing
homes, but it might be possible to install some sort of wind
deflectors.
My suggestions would pertain more to new builds.
Do pretty much the same things that would work in Florida.
If you did that, you could probably get a better rate, since
the home would be subject to very limited damage.
You do realize that the maximum payout for Federal Flood insurance is $250,000. Flood insurance isn’t rebuilding million dollar mansions.
If your home is worth $5million or $250,000. You both get the same amount - $250,000.
The reporting is trying to do a class divide scheme here.
Compared to what? In Colorado, we live in a fire danger area of the mountains and our insurance is $4,200 a year.
Our home in Florida is near the bay and carries flood insurance with the property insurance for a total of $2,100 a year. The home was in the direct eye of hurricane Michael in 2018 too, and it suffered damage.
Gee is earthquake or forest fire insurance going up? Asking for a friend……
<>Put up a shack<>
You don’t know what you’re talking about, but thanks anyway.
Good question.
I wouldn’t be surprised to hear that forest fire insurance
has gone up in California.
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