Why should I pay for New Orleans?

[stymie222]

What is the name of your state? Iowa Do the claims from coastal, flood and hurricane prone areas in any way effect my homeowners insurance premiums here in Iowa? If so, Why should my Premiums be increased by some idiot who wants to build on the Ocean? Why should any of us have to pay for the damage of city that has continued to build below sea level ? Its about time that the Government impose strict insurance guidelines that will make the owners of endangered propery responsible for there own decisions to buy or to occupy these homes. They could wipe out the insurance industry, and the benifits to the rest of the country if they dont.

 

[efflandt]

Did your insurance bill go up this year or are you just speculating? I am one state east, but my combined home & auto insurance bill in May 2006 was slightly lower than last year. My insurance for a modest home was $455.00 vs. someone else who posted here that their home insurance in Florida was over 10 times that (over $5000).

Maybe it depends whether your insurance company has a presense in frequently storm stricken areas, or if they figure an area is overdue for a major storm (like farther up the east coast).

 

[moburkes]

What is the name of your state? Iowa Do the claims from coastal, flood and hurricane prone areas in any way effect my homeowners insurance premiums here in Iowa?

NO. Its illegal for an insurance company to charge premiums in ANY state, based on the claims paid out (or anticipated pay outs) in another state.

 

[stymie222]

Thats great- BUT

Glad to hear that. My only concern now is that when the federal government has to step in, as it did in New Orleans, all of us are paying for these people who chose to live in disaster prone areas. This has got to stop.

 

[Mister Darcy]

Glad to hear that. My only concern now is that when the federal government has to step in, as it did in New Orleans, all of us are paying for these people who chose to live in disaster prone areas. This has got to stop.

I agree. And while we're at it, how about cutting off aid to those idiots who build in areas prone to tornados.

 

[panzertanker]

how about cutting off aid to those idiots who build in areas prone to tornados.

You forgot, those idiots (I meant Iowans) also live in areas that get flooded.....

 

[cissycicle]

flood zone inspection fee

NO. Its illegal for an insurance company to charge premiums in ANY state, based on the claims paid out (or anticipated pay outs) in another state.

Hey Mo, do most if not all closing costs have a "flood inspection fee" of somewhere around $25.00? Isn't that mandatory to be charged that fee which goes into a pool to support the rebuiding of flood zones?

 

[moburkes]

Hmm. I'm not sure. However, that fee is simply for someone to do the leg work to determine if the house is in a flood zone area, and then which flood zone its in. If its in a flood zone, then the borrower will be required to purchase a separate flood insurance policy. The deductibles on them are STEEP like $5000 is probably the lowest.