I Am Afraid Many Will Be Disappointed and Surprised

[Supsalemgr]

http://www.cnbc.com/id/49599228

Our thoughts and prayers are with all the folks impacted by "Sandy".

However, this seems to come up after every major hurricane event. Too many people do not think they need Flood Insurance. Then after the event they find out their Homeowner policy does not cover the peril of flood. Since it was a category 1 storm the wind damge will be limited unless there is a tree in the house. Also, with more and more consumers buying their insurance on line or via an 800 number they are not receiving expert advice from an agent. Many of these sites sell based on price and do not offer adequate limits or coverage. An astute consumer might be able to buy Auto insurance "direct", but very few are sphisticated enough to buy Homeowner insurance "direct".

One of the issues in the affected areas is the high values of the homes. The basic flood policy only has limits up to $250,000 on the dwelling and $100,000 on contents. Many of the comsumers need an "excess" flood policy that covers amounts above the basic limits and these polices have to be purchased through an agent.

Unfortunately the reports of these deficiencies in coverage will begin to surface soon.

[rstrong]

Many who DO have flood insurance, will find out that it cover sewer backup and pipe bursts, but NOT "overland flooding."

[billy.pilgrim]

http://www.cnbc.com/id/49599228

Our thoughts and prayers are with all the folks impacted by "Sandy".

However, this seems to come up after every major hurricane event. Too many people do not think they need Flood Insurance. Then after the event they find out their Homeowner policy does not cover the peril of flood. Since it was a category 1 storm the wind damge will be limited unless there is a tree in the house. Also, with more and more consumers buying their insurance on line or via an 800 number they are not receiving expert advice from an agent. Many of these sites sell based on price and do not offer adequate limits or coverage. An astute consumer might be able to buy Auto insurance "direct", but very few are sphisticated enough to buy Homeowner insurance "direct".

One of the issues in the affected areas is the high values of the homes. The basic flood policy only has limits up to $250,000 on the dwelling and $100,000 on contents. Many of the comsumers need an "excess" flood policy that covers amounts above the basic limits and these polices have to be purchased through an agent.

Unfortunately the reports of these deficiencies in coverage will begin to surface soon.

wait, what am I reading. could it be that yet another private sector is always better republicon is lamenting that more people should have taken advantage of this government program.

re: your "excess flood policy" - splain where I get one of them things


I'm beginning to think that suppermanager may have been an ins salesman - he does pitch it well. now tag, come back and give me a quote from Lloyds for this "excess" flood you know so much about

[billy.pilgrim]

Many who DO have flood insurance, will find out that it cover sewer backup and pipe bursts, but NOT "overland flooding."

fema flood ins. covers all types of flood waters, the surprise issues are generally with what is covered

don't know of any other kind, outside of lloyds or some other exotic policy

[rstrong]

wait, what am I reading. could it be that yet another private sector is always better republicon is lamenting that more people should have taken advantage of this government program.

What government program? Wouldn't this be strictly private insurance?

Private insurors do indeed offer extra insurance for flooding for an extra fee. For even more money they offer flood insurance that covers overland flooding - needed for anything from snow melt run-off to heavy rain run-off major floods like overflowing rivers and storm surges.

[Supsalemgr]

The excess flood policies usually fall into the catgoery of "excess and surplus" coverage and is only sold through brokers and agents. I am not pushing anything, just pointing out what is or is not covered by the Homeowner policy. The problem with the NFIP is the rates are not adequate and we taxpayers have to subsidize the program. This is why there is no private market as a private carrier would never sell a policy if it had to charge actuarily sound rates.

I don't know what rstrong is referring to as "overland" flood, but those are covered by the NFIP policy. Maybe he is thinking about his Canadian policy.

[Reality]

BP, SSM told you how to get excess flood insurance but what good would it do you. Evidently you cannot read.

[Brother]

In this are it has to do with whether you are considered in a "flood plain." If you are you must purchase flood insurance if you get a mortgage to buy your home. I wonder if the areas that are flooded by Sandy are considered to be in a flood plain. I think it goes back 100 years to the the last flood to be considered a "flood plain."

[Supsalemgr]

I would think most of the areas are considerd to be in the flood plain. Each community also has a responsibility to work with the NFIP to determine which program thay are in. One of the problems with Katrina is some of the MS counties were not diligent so some folks were left out.

Another issue, mortgagees are not always diligent to make sure the coverage stays in place. Most newer mortgages require Flood insurance. However, there is some age on many of those dwellings affected and they may be paid off or a mortgagee did not circle back to require flood insurance on all their mortgages.

[billy.pilgrim]

wait, what am I reading. could it be that yet another private sector is always better republicon is lamenting that more people should have taken advantage of this government program.

What government program? Wouldn't this be strictly private insurance?

Private insurors do indeed offer extra insurance for flooding for an extra fee. For even more money they offer flood insurance that covers overland flooding - needed for anything from snow melt run-off to heavy rain run-off major floods like overflowing rivers and storm surges.

private companies sell and often service the policy but in the US the olny flood policies are all from the fed

it does warm my heart to see suppermanager promoting a federal program, even though this may be the worse of the worse of our fed programs

[rstrong]

I don't know what rstrong is referring to as "overland" flood, but those are covered by the NFIP policy. Maybe he is thinking about his Canadian policy.

Sorry; I didn't realize that the US has a big government program for flood insurance. (Wow, you folks HAVE gotten socialist in recent decades!)

Here in Canada you're required to have insurance on any mortgage. It's all private, open market insurance. It usually include *some* flooding insurance (sewer backup, burst pipes), but "overland flooding" (heavy rain run-off, storm surges, overflowing rivers or ditches) costs extra.

[billy.pilgrim]

ain't it amazing that we require the middle class homeowner to adequately insure their homes before they can get a mortgage but the 5 million dollar ocean front can mortgage to the hilt and carry $250,000 of flood ins

[Supsalemgr]

BP, back in the 90's the NFIP realized they could not administer the program efficiently. Now many carriers write NFIP policies through the "Write Your Own" program. A private carrier services the policies they issue for a fee. All proceeds over the fee are paid to the NFIP. The companies also adjust the claims for the NFIP, pay them and then bill the NFIP for adjusting fees and the amount of the claims paid. This is a real benefit for the consumer as only one adjuster handles a claim. In a case like a hurricane the insured normally does not have a problem as the "wind or water" damage question is handled internally. The problem comes when the Flood policy is inadequate if the "water" part of the claims exceeds policy limits. That is why excess flood policies are needed for higher valued homes.

Once again, I am not pushing anything. The reality is the NFIP policy prices are not actuarily sound and the government has to subsidize the program.

[billy.pilgrim]

BP, back in the 90's the NFIP realized they could not administer the program efficiently. Now many carriers write NFIP policies through the "Write Your Own" program. A private carrier services the policies they issue for a fee. All proceeds over the fee are paid to the NFIP. The companies also adjust the claims for the NFIP, pay them and then bill the NFIP for adjusting fees and the amount of the claims paid. This is a real benefit for the consumer as only one adjuster handles a claim. In a case like a hurricane the insured normally does not have a problem as the "wind or water" damage question is handled internally. The problem comes when the Flood policy is inadequate if the "water" part of the claims exceeds policy limits. That is why excess flood policies are needed for higher valued homes.

Once again, I am not pushing anything. The reality is the NFIP policy prices are not actuarily sound and the government has to subsidize the program.

I know all about the flood program from all angles. I don't believe in the program and while it may be a good idea in some areas, it has served to ruin the coast along the fla panhandle.

and once again, it warms my heart to see that you have profited from yet another government program

[billy.pilgrim]

how did I make a double post

[Supsalemgr]

BP, I have not profited from the NFIP. Carriers have profited from the "WYO" programs, but it was the NFIP who created the program. Nothing wrong with that because the NFIP was incompetent and could not administer the program

[Colonel Taylor]

OK all can now pile on after this.
As I have said I was a contractor for many years. Well about 80% of my work was on the coast right from Pt. Pleasant Beach and as far south as Long Beach Is. During Andrew I made more money the next few years then most make in 20 years and I was a fair contractor who did high end work. After this I was a sought after contractor in the area.
But ya know what these folks deserve what they got, well maybe not but I do not feel sorry for anyone who builds an $10,000,000.00 10,000 sq. foot home on the beach. This has happened before maybe not this magnitude and it will happen again. I have seen many of the houses I worked on in Pt. Pleasant and along rt. 35 on the news the last few day and Oh well. Also the only people that are in this area now are what they call winter renters. They rent many of the smaller homes and condo's for cheap(section 8 housing) this time of the year. I managed many of these rentals in the winter then got the houses ready for summer. These poor people will get nothing but a place to stay for a few weeks then forgotten, but the houses will be rebuild most likely with guvmit money.
I hope not one penny goes to grants and such for these morons to rebuild in the same place. Growing up on the coast I know you will not stop water surge, the end.
Have at it!

[nobody]

The lucky ones if it can b called lucky. The people that had their homes burned down will b covered by homeowner insurance.

[Colonel Taylor]

The lucky ones if it can b called lucky. The people that had their homes burned down will b covered by homeowner insurance.

I have a nephew who is a first responder right in the middle of this and I just talked to him and he hasn't slept since Monday. He is a lot like me but does what has to be done, his biggest complaint right now is. The looting has started and they do not have the personnel to stop it.

[Colonel Taylor]

I don't think this has happened before in NJ and NY.

You are joking right? been drinking the Al Gore kool aid again we see.

Climate change will cause a lot of rethinking and smart planning. Too bad the NC GOP banned that here.