Flood Insurance Question(Raymond?)

[Lake Chuck Duck]

The wife and I are really looking hard at a house we are thinking of getting. The location of the house is of course in a flood zone, however the house has never been flooded before. Current flood insurance on the house is around $416 which is a good price.

Here is the problem. FEMA has released a statement saying be ready for the "possibility" of rates for flood insurance going up in certain types of flood zones due to a government regulation. Our agent ran some numbers and said worse case scenario we could be looking at an increase to $4,500!!! But generally a 3 time increase can be expected. There is no telling when they will do it or by how much. Just whatever FEMA feels like doing.

This flood insurance thing is really making us reconsider buying this house, even though we know it will probably never actually flood. Anybody have some insight or knowledge about these new FEMA rate increases??

[Raymond]

I wouldn't necessarily worry about the huge increases predicted by FEMA north of the coast. Sure, it can happen but those on the coast are the ones they are looking at right now. Check the elevation certificate and make sure the BFE is under the top of the bottom floor by several feet.

[toodeep]

south of the intercoastal in lafourche they are estimating as high as 20000 a year for flood insurance. i want to know what the banking industry will do with 1 to 2 million homes across south louisiana foreclosed because i know i can not afford that.

[Lake Chuck Duck]

Originally Posted by Raymond

I wouldn't necessarily worry about the huge increases predicted by FEMA north of the coast. Sure, it can happen but those on the coast are the ones they are looking at right now. Check the elevation certificate and make sure the BFE is under the top of the bottom floor by several feet.

I believe required for that area is 10' and we are at 9'. Just got the elevation cert. yesterday.

[ckinchen]

Guys you really should give Raymond a shot at your insurance. I was paying $3,500 per year for my camp, after switching to Raymond I am paying around $2,500 and I have more coverage. More coverge at a cheaper price, hard not to make the switch.

He is a site sponsor and you can email him at rlittle@lyonsagency.com or send him a pm "Raymond" and he will give you his cell phone number.

[swamp snorkler]

Originally Posted by toodeep

south of the intercoastal in lafourche they are estimating as high as 20000 a year for flood insurance. i want to know what the banking industry will do with 1 to 2 million homes across south louisiana foreclosed because i know i can not afford that.


I don't think it 1 to 2 million probably closer to 100,000 to 200,000, but 100,000 to 200,000 homes valued at an average of $100,000 to $500,000 is quite a chunk of change when the bank is just sitting on it.

Too Deep you bring up a good point. I live just north of 90. When I built 9 years ago the flood line was at my neighbors house and passed though his garage. Since the lines have been redrawn it moved about a 1/4 mile closer to Bayou Lafourche.

In Bayou Gauche (St. Charles Parish) they have some $300,000 homes that will be worthless if they have to pay the projected $20,000 yearly cost of Flood Insurance which after having a few community meetings FEMA is telling them.


Right now I'm paying more for flood than I do homeowners. All of these levess that the COE is building is simple dissapating water from the Democrats in NOLA to the Bayou Communities. Never before have you seen LaPlace flood. Pretty soon once these levees are complete all the water in Lake Savador will be pushed up though Gheens and flood all of the 308 side of Raceland.

Makes me sick, I'm 7' above sea level and 20 miles inland if I flood you can whipe Lafourche Parish south of HWY 90 off the map.

[Raymond]

I have said it before so this shouldn't be a surprize but FEMA is and has been insolvent prior to Katrina/Rita. FEMA makes the SS trust fund look like Apple stock. Poor management and subsidizing flood premiums for the last 25 years has done them in and no amount of increases will ever fix it. There is no common sense used in any government program; yours, mine, or my neighbors. It's extremely frustrating to see $20 + million dollar structures (South Cameron High School, Johnson's Bayou School) being built on the guise of repopulating Cameron Parish when nobody down there can afford insurance coverage and Kids. Can you imagine how much insurance costs for those structures in order to educate at most 300 kids and when they graduate there will not be anymore behind them? What happens to those buildings when they no longer have students in them, who will continue to pay for the gov't required insurance premiums?
OK, rant is over so go back to your regularly scheduled program.

[fishwater]

I am a flood insurance adjuster the premiums will go up on everyone from the money payed out for Super Storm Sandy just like they did for Katrina and Rita, which was about a half percent. The talk of the flood program raising to 4500.00 in some cases is if the Fed Govt does not carry the flood program anymore and it goes to the private sector, which will never happen, the fed has renewed its handling of the program this year so another 5 years so it will not increase much many another 1 %.

[Slidellkid]

I live in a flood zone myself, in Deridder, if you can believe that. I will never buy another house in a flood zone and be at the mercy of the Federal gov't deciding how much my rates have to go up to pay for the storms in New York. Why not just buy a house that is not in a flood zone - it's really just that simple.

[fishwater]

That's the only way to do it, if they just made the state affected premiums go up your payment would be about 1 million a year because of katrina and rita. I have flood insurance on my house not in a flood zone i, but its only about 400 a year i will never not have it, I have heard we never thought it would flood way to many times.

[TarponTom]

Originally Posted by fishwater

That's the only way to do it, if they just made the state affected premiums go up your payment would be about 1 million a year because of katrina and rita. I have flood insurance on my house not in a flood zone i, but its only about 400 a year i will never not have it, I have heard we never thought it would flood way to many times.

A lot of areas will be impact. The flood rates have a 5 year span to hit actuarial rates (rates on the private market with a profit included). I wouldn't purchase any property in any area where flood insurance is required and its not geographically located inside a federal protection levee system that is certified. I talked to someone yesterday who recieved a quote in Slidell, LA for 250k and 50k contents for 23,500 per year. Its going to be a blood bath for many parts of Louisiana.

[lsuriot]