New Orleans Home Flood Insurance

[jwells777]

Just curious about the insurance situation in New Orleans. As such, I ask the following:

1) Were most peoples homes uninsured against the damage from the hurricane?

2) If they were uninsured, is the bank entitled to go after more than just the property (i.e. if you had a bunch of savings, they repo the property and then come for your savings since the property is no longer worth the amount of the mortgage)?

3) If the answer to 2) is yes, is the government going to provide some sort of relief?

4) If the answer to 3) is no....that is really tough...

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Interesting note on FEMA Flood Plains
FEMA

(Link)

Floodplain insurance:
The city doesn't require floodplain insurance, it is a federal requirement. The U.S. Congress established the National Flood Insurance Program (NFIP) in 1968. Participation in the NFIP is based on an agreement between local communities and the Federal Government that states if a community will adopt and enforce a floodplain management ordinance to reduce future flood risks to new construction in Special Flood Hazard Areas, the Federal Government will make flood insurance available within the community as a financial protection against flood losses.

What if my lender requires flood insurance but I don't think my property is in the SFHA?
A lender may set requirements for flood insurance that are more stringent than those set by FEMA. If the lender is requiring the insurance to meet mandatory flood insurance purchase requirements, then the property owner and the lender may jointly request that FEMA review the lender's determination. In response, FEMA will issue a Letter of Determination Review (LODR).

 

[rahvin]

You cannot obtain a mortgage without Federally mandated flood insurance if you live in a FEMA designated floodplain. All of NO is likley a designated FEMA floodplain (the floodplain is defined using 100 year floods). So anyone that has a mortgage has flood insurance, and even if they don't have a mortgage the insurance is required by law.

 

[BlueWeasel]

I was under the impression that most insurance companies, and more specifically, lenders require flood insurance if the property is determined to be in a flood plain.

Also, it seems I heard on a report on the news that gave a percentage of people in NO that had flood insurance, and it was pretty low...around 40% or so. I don't really recall, though, so that statistic may be completely off.

 

[chimmytime]

This is only of course with people who owned property correct? What if you rented?

 

[BlueWeasel]

Originally posted by: chimmytime
This is only of course with people who owned property correct? What if you rented?

Unless they had renter's insurance, they are likely screwed.

 

[xSauronx]

Originally posted by: BlueWeasel

Originally posted by: chimmytime
This is only of course with people who owned property correct? What if you rented?

Unless they had renter's insurance, they are likely screwed.

theyre screwed anyway, concerning insurance its just a matter of to what degree

 

[ThePresence]

Originally posted by: rahvin
You cannot obtain a mortgage without Federally mandated flood insurance if you live in a FEMA designated floodplain. All of NO is likley a designated FEMA floodplain (the floodplain is defined using 100 year floods). So anyone that has a mortgage has flood insurance, and even if they don't have a mortgage the insurance is required by law.

Won't this bankrupt the insurance companies?

 

[NikPreviousAcct]

If there was an insurance bubble before, I'm pretty sure it's popped.

 

[TheToOTaLL]

What about those people that lived there and had homes that were paid off? Guess what? No mortgage, no requirement for insurance. Lots of people I'm sure screwed themselves by not keeping it.

 

[SarcasticDwarf]

Originally posted by: ThePresence

Originally posted by: rahvin
You cannot obtain a mortgage without Federally mandated flood insurance if you live in a FEMA designated floodplain. All of NO is likley a designated FEMA floodplain (the floodplain is defined using 100 year floods). So anyone that has a mortgage has flood insurance, and even if they don't have a mortgage the insurance is required by law.

Won't this bankrupt the insurance companies?

All flood insurance is underwritten by the US government. It is just going to bankrupt us.

 

[Scarpozzi]

Of course, most homes that weren't destroyed by the floods flew apart from the high winds. I'm pretty sure they're not covered because natural disasters usually aren't. I don't know if there's a such thing as hurricane insurance, but I'd probably torch my house if anything was still standing just so I could process a fire claim.

 

[SarcasticDwarf]

Originally posted by: Scarpozzi
Of course, most homes that weren't destroyed by the floods flew apart from the high winds. I'm pretty sure they're not covered because natural disasters usually aren't. I don't know if there's a such thing as hurricane insurance, but I'd probably torch my house if anything was still standing just so I could process a fire claim.

Those that are uninsured/underinsured will still be covered because of FEMA.

 

[iamwiz82]

Originally posted by: SarcasticDwarf

Originally posted by: ThePresence

Originally posted by: rahvin
You cannot obtain a mortgage without Federally mandated flood insurance if you live in a FEMA designated floodplain. All of NO is likley a designated FEMA floodplain (the floodplain is defined using 100 year floods). So anyone that has a mortgage has flood insurance, and even if they don't have a mortgage the insurance is required by law.

Won't this bankrupt the insurance companies?

All flood insurance is underwritten by the US government. It is just going to bankrupt us.

The flooding of the Mississippi river 10 years ago didn't kill us, I don't think this will either.

 

[vi edit]

Originally posted by: iamwiz82

Originally posted by: SarcasticDwarf

Originally posted by: ThePresence

Originally posted by: rahvin
You cannot obtain a mortgage without Federally mandated flood insurance if you live in a FEMA designated floodplain. All of NO is likley a designated FEMA floodplain (the floodplain is defined using 100 year floods). So anyone that has a mortgage has flood insurance, and even if they don't have a mortgage the insurance is required by law.

Won't this bankrupt the insurance companies?

All flood insurance is underwritten by the US government. It is just going to bankrupt us.

The flooding of the Mississippi river 10 years ago didn't kill us, I don't think this will either.

Edit...I just found a different number. Midwest floods were around 16 billion.

 

[SarcasticDwarf]

Originally posted by: iamwiz82

Originally posted by: SarcasticDwarf

Originally posted by: ThePresence

Originally posted by: rahvin
You cannot obtain a mortgage without Federally mandated flood insurance if you live in a FEMA designated floodplain. All of NO is likley a designated FEMA floodplain (the floodplain is defined using 100 year floods). So anyone that has a mortgage has flood insurance, and even if they don't have a mortgage the insurance is required by law.

Won't this bankrupt the insurance companies?

All flood insurance is underwritten by the US government. It is just going to bankrupt us.

The flooding of the Mississippi river 10 years ago didn't kill us, I don't think this will either.

True, but it is going to lead ti a siginificant insurance cost increase and higher taxes (or less benefits from those taxes).

 

[vi edit]

Here's a report on the midwest floods -

http://www.mvr.usace.army.mil/PublicAff.../HistoricArchives/Floodof1993/fl-5.htm

The number of structures destroyed, and the number of people displaced is a fraction of what Katrina has caused.

 

[rahvin]

Originally posted by: SarcasticDwarf

Originally posted by: Scarpozzi
Of course, most homes that weren't destroyed by the floods flew apart from the high winds. I'm pretty sure they're not covered because natural disasters usually aren't. I don't know if there's a such thing as hurricane insurance, but I'd probably torch my house if anything was still standing just so I could process a fire claim.

Those that are uninsured/underinsured will still be covered because of FEMA.

FEMA doesn't cover individual people, their money is used only to repair damaged public infastructure. The under-insured will be hurt, but it's their own fault.

 

[allisolm]

FEMA doesn't cover individual people, their money is used only to repair damaged public infastructure.

You might want to rethink that. The federal flood insurance program for individuals is through FEMA.

 

[jadinolf]

Originally posted by: SarcasticDwarf

Originally posted by: ThePresence

Originally posted by: rahvin
You cannot obtain a mortgage without Federally mandated flood insurance if you live in a FEMA designated floodplain. All of NO is likley a designated FEMA floodplain (the floodplain is defined using 100 year floods). So anyone that has a mortgage has flood insurance, and even if they don't have a mortgage the insurance is required by law.

Won't this bankrupt the insurance companies?

All flood insurance is underwritten by the US government. It is just going to bankrupt us.

Which we already are.

 

[rahvin]

Originally posted by: allisolm
FEMA doesn't cover individual people, their money is used only to repair damaged public infastructure.

You might want to rethink that. The federal flood insurance program for individuals is through FEMA.

I can see how you got the impression I implied something like that but you need to read my comments in context with what I was replying to. Yes FEMA is the agency that backs federally mandated flood insurance, BUT to say someone that is underinsured is going to be bailed out by FEMA is incorrect, FEMA doesn't provide financial assistance to people directly, and they sure as hell aren't going to compensate you for being underinsured.

 

[SarcasticDwarf]

Originally posted by: rahvin

Originally posted by: allisolm
FEMA doesn't cover individual people, their money is used only to repair damaged public infastructure.

You might want to rethink that. The federal flood insurance program for individuals is through FEMA.

I can see how you got the impression I implied something like that but you need to read my comments in context with what I was replying to. Yes FEMA is the agency that backs federally mandated flood insurance, BUT to say someone that is underinsured is going to be bailed out by FEMA is incorrect, FEMA doesn't provide financial assistance to people directly, and they sure as hell aren't going to compensate you for being underinsured.

Alright, THROUGH FEMA< those that are uninsured will be able to get very low/no interest loans, grants, etc. While it won't be as good as being *fully* (and few people are) insured, it is often a large amount of money.

 

[Aztech]

Ah man, I just found out that I forgot to pay my flood insurance bill. I got about 6 feet of water in my house. I saw it this past weekend. EVERYTHING is ruined! If insurance is not required where you live, as was the case for me, then it's up to the individual to buy it seperately. I had been, but I forgot to pay it for some reason this past year. I hope FEMA helps me out good...

Edit: I have a lot of pictures. Someone tell me a good program or whatever way to shrink them down and post them somewhere...