Why Flood Insurance Is Failing The U.S.
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- เผยแพร่เมื่อ 26 ก.ย. 2024
- 2020 is officially the busiest hurricane season on record and flooding is one of a storm’s most devastating consequences. FEMA estimates one inch of flood water can cause up to $25,000 in damage. The U.S. began offering nationalize flood insurance in 1968 but the program, called the NFIP, is now over $20 billion in debt. Private companies are starting to offer flood insurance as well. However, flood insurance is more complicated than it may appear. Watch the video to better understand how flood insurance works, and doesn’t work, in the U.S.
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How Flood Insurance May Encourage Dangerous Building Practices
The region I live in has rivers that flood the nearby houses. They call it a tragedy and then rebuild the house. It happens again the next year. And the next year. I ain’t no genius, but how about we stop rebuilding the houses near the river.
For real
Well I know many place that never or hardly flooded, but people usually called it Ghost town in US where I don't think can sustain any people economically.
“Why don’t people just abandon their biggest investment and move some place else?” Because you can’t just sell it if you want people to leave entirely. So why don’t people just do this, I mean beyond flawed personal logic and failed systems/promises?
just build it on pilons
@@TheOzzyMartin1 there are well known ways to build a house so it's protected from flooding. it's not rocket science.
I'm not a fool
uhhhhh your house flooded three times and you still live there
many of them have no choice as their mortgage might be underwater and the market is beginning to wake up to the imminent NFIP failure.
@@robertfleming2432 "underwater"
😂
@@robertfleming2432 A loss is a loss, dude. Sorry to say but the only problem with flood insurance is that it's allowing stupidity. The writing was on the wall when they bought the house and places like FL keep building new ones because people keep buying.
@@sws212 you're not wrong but you have to be compassionate because not everyone who is in this situation bought their home. there are many people in these programs who have inherited homes that are very old and when they were built they were not in the flood plain. flood plain is shifting due to global warming
I think the higher the value of your home, the more you should pay for flood insurance. If you are rich and decide to be stupid and purchase a home near the coast, then you should pay way more for insurance.
NFIP increases cost based on risk but the premiums are still not based on the real risk.
@@robertfleming2432 Exactly NFIP is a joke.
I lived in Houston for two and a half decades and I can’t even count how many floods I went through. Then Hurricane Ike dropped a tree on my garage. I was smart and gtfo at that point, now they’re seeing hundred-year floods practically every year.
it is only going to get worse.
Yup my job wanted me to relocate to Houston... until I started talking to coworkers that live in Houston and they told me about all the flooding. Then I told my company nope and thankfully they were okay with it.
Where do you live now?
@@xxxxMonkeyGirlxxxx Where do you live?
I live in Houston. Some people keep boats to travel the streets in case it floods
I live in a "zone x" property and was willing to buy just for the remote chance. But I was told that I wasn't able to purchase flood insurance since I wasn't at risk. That is the exact opposite of how insurance should work.
Thats incorrect information. Whoever was telling you that told you wrong. The only reason they could be correct is your community is not in the NFIP or noncompliant with the NFIP. You need to check to see if you have a floodplain manager or talk with an agent who is willing to do the legwork to find out. If you are in a non nfip community consider trying to get your community organized (There are often benefits for the community to do so , so they may be interested.) If you can't get NFIP, go with private market flood. FEMA is desperately trying to get x zone people into the program all the time - if you find the right WYO you should be able to get a policy no question as long as you are in an area that does not have local ordinances that got them kicked out of the program.
If you need advice about obtaining flood insurance please reply to this message with a contact. I do not sell insurance or try to make a profit but i know a lot about the program.
www.fema.gov/media-library-data/20130726-1629-20490-5244/fema_496.pdf
@@robertfleming2432 Expert!
I live in a "zone x" and do have NFIP flood insurance.
@@robertfleming2432 Thanks. I'll check again.
I'm buying a Zone X home right now. I'm buying flood insurance...call around.
Ben Shapiro: sell your house to Aquaman
@Gilga Mesh can you provide specifics? if you have examples of better flood management practices i want to know so i can start to build them. Wikipedia lists the individual you mentioned as a pseudoscientist
@@robertfleming2432 your wikipedia fax dont affect my feelings
This is the most American idea of a title and question to ask yourself. The real question is, if a patch of land is deemed unsuitable due high risk of flooding, YOU SHOULD NOT BE ALLOWED TO BUILD ON IT !
The federal flood program will not insure properties constructed in this manner for Post FIRM dates. Its allowed to build here but people are expected to self insure, and anyone that wants to do it is going to have to build with cash and not a loan as no underwriter will touch an uninsured property in a special flood hazard area
sorry but this is the american way. people from poor countries will not understand this.
@@mr.10rupees43 People from rich countries don't understand it either... American's are disconnected with reality. Britain and Australia and Japan and Canada (etc....) won't let you build on flood plains.
@@runningfromabear8354 Nature is meant to be twisted and conquered and subjugated at man's will.
Here in Florida property on barrier islands costs 10 times as much as on the mainland. Highest risk areas are the most desired.
*We need to build homes differently, and build in different places*
how tho? give examples
Maybe first start to build your house out of stone instead of wood
@@cardboardpackage you can build houses higher off the ground to reduce risk of flooding. The type of materials you build with can help reduce risk of fires or damage from wind. This costs more but this also should reduce your insurance costs.
@@agisler87 Okay but you are not Jessica. You are doing someone else's work.
@@cardboardpackage Such a weird statement.. It's an open discussion where anybody can respond. And it's not work, Jessica has no duty to respond to you.
If everyone who lived near the shore had a fan we could just blow the hurricanes away.
Hmmmmmmmmm..............😬
NOT a bad idea lmao
We should nuke them or redirect them with a sharpie.
@@bobs182 its going to alabama
Wise words. Even the great philosopher, Patrick Star, would agree with that! "We should take the hurricanes, and push them somewhere else!"
I love this channel. It is so hard to find technical breakdowns in news like this.
Why don’t they just use sponge to clear the water?
They dont have enough furnaces to dry them out
They don't like sponging off other people.
@@heatherswanson1664 If you put it in the nether then you can auto drying but Australia is quite far away.
Obviously because China is making all the sponges and they don't want us to have the upper hand during a storm.
Feds need to get out of the flood insurance business and let private insurance take over.
I can always tell by the comments how little people know about Emergency Management and Hazard Mitigation. The reason the feds are even involved in the first place is because private insurance companies are charging exorbitant premiums for flood insurance, of which most people in the flood-prone areas cannot afford. Insurance Companies are already a HUGE scam to begin with. The "free" market CANNOT fix everything. In some cases, the market only worsens an already devastating situation. But of course you wouldn't know that unless you actually had to assist disaster victims in picking up the pieces after they've lost everything.
@@dirtycommie2877 I don't think the Feds should support bad behavior like building in flood prone areas. There's probably a good reason private flood insurance is so expensive.
The government should pay them market value for their houses and make them move out of flood zones.
It is mind-boggling to me why anyone would buy a property with flud risk, unless there is a mandatory reason to do so.
many of the properties are inherited and not bought. In many of the southern states just about all of it is at flood risk. If people want their gulf of mexico oil to show up well some of the people working there are living in these flood prone areas. Its a bad investment to live there but for many people on the corporate lifescript there is little other choice- major metros are so overcrowded people will live wherever they can. The other people living there are boomers and older who don't care too much about the medium to long term flood risk to their investment because by the time the NFIP inevitably fails they know they are going to be dead. They will live in a flood prone property for those great "ocean views"
@@robertfleming2432 that's what I meant when I said unless they have to.
It's also mind blowing that flood is in the title and spoken of constantly throughout the video but people spell it like "flud". American education shining like ...da sun 🤣
insurance is about modeling the claims in such a way that the premium collected can be invested at a return where they can pay all their employees and fixed cost + some margin! if you think, on avg, your 200K home & most homes around you will need a rebuild every 3 years, then expect to pay at least 1/3 of it annually. there is no such thing as free money unless you're a Tech IPO. lol
They need to invest in dams and flood walls.
@@kaasappel123 you're asking govt to spend money on its people. lol, good luck with that! Looking at our highway and bridge construction, we'll probably see something concrete in 20 years if they manage to move beyond the hundreds million dollar consultation phase.
@@kaasappel123 dams and flood walls are not a workable solution for the entire US hurricane alley. They are important pieces of infrastructure for populated areas but its not economical to construct a levee on the entire coast. Even if you did this, you're not going to stop rainfall induced flooding. Rainfall induced flooding is basically impossible to stop when it gets severe as there is literally nowhere for it to drain out. pumping systems can stop it somewhat for minor and moderate events but ultimately it will fail. The best solution for US in dense areas is good flood control as you said but for people in more remote coastal/flood prone areas the best solution is to elevate all new buildings. elevation if properly done can take flood risk down to virtually zero - the only problem is its insanely expensive on existing construction
@@kaasappel123 They need to elevate the home using ancient technology. People in the old days don't build on the ground and then buy insurance policy, hoping that it will never flood.
you forgot the 50% profit margin of private insurance so if your risk factor puts you at $500 a month. insurance will charge another $500 in pure profits of benefits you will never see and then when you do flood they will find a reason to deny your claim. Yes flood insurance would be that expensive if it actually priced in risk but it doesn't and that's also why they will denie nearly every claim. Just like all other insurance.
$10k per year I was quoted for flood insurance. I am not near water and I have a small home. I can’t afford $1k per month. That’s not right!
Wait, federal flood insurance, but federal healthcare is too much?
Bet Those boomers in Florida approve of that!
Just because we have one doesn't mean either is a good idea.
then dont build on flood plains or marsh lands that water has to go some where, dont even think about flood defences as they do the exact opposite down stream
I looked at the flood maps before I bought my house, then went and looked at what could cause flooding in the immediate area. I then found the daughter of the man who built the house and lived in it for 70 years. She said it had been up to the driveway but no further since 1947 and the creek had been dug out so there hasn't been an issue since then. Do research before you buy a home. If you buy a house on the coast, do some research about elevation, floods, storm drain efficacy, etc.
This is very good advice - one thing i would suggest is to ask the most long lived neighbor who has lived in the neighborhood consistently
Maybe cause flood insurance is not adequately taking into account the risk.
If you gotta pay a higher premium maybe you won't live in a flood prone area.
That was that one guys whole point in the beginning...
The NFIP , as a government program, should provide unprofitably low insurance premiums to make it affordable those households that can’t afford profitably high insurance premiums.
Ok, just build a floating house 🏡
yeah maybe it could cost less than building on concretre...considering you'd need to remove the concrete, add hydrophobic coat, anchor the house using motorized spool of galvanic resistant cables.
or put the house on stilt footings...
or just put everything on wheels and leave as soon as there's a warning.
@@TheIcyhydra . . . . there you go, floating away . . . with the next wind, after sail instillation, Lol !"😎
@To The Point ** if they'd live in a flood area and they don't have alot of money to put their entire structure on super high stilts footing......but yeah don't think about it too much or else you'd get an aneurysm
hmmm ... like a boathouse
and let it crash into another floating house
All insurance is a scam!!! They love to collect and won’t pay out! There is almost always fine print that gets them out of paying. Car, medical, home etc etc it’s all a rip!
Maybe spend less on foreign wars and more on domestic social security, healthcare and FEMA. US military annual budget is 800 billion.
😞. I agree.
This is why President Trump is the greatest president in U.S. history. No wars, and bringing the troops home.
I do agree with spending less on military, but it is employing a lot of American people. The military industry complex is effectively a big employment program. There needs to be a shift away from that industry to other industries over time.
But then the US will start to lose its super power influence over the world.
@@wenchai5923 lmao /facepalm
I live in the low countries (Belgium/ The Netherlands), and despite this flooded houses are really rare. Look into it.
benelux countries have very good flood control due to the high wealth per capita and a short coastline. Unfortunately these kind of projects will likely never be possible for the US as you would have to dam up thousands of miles of coastline.
*In coastal Texas, only people who are poor or voluntarily buy old houses live on the first floor. All the new homes are on pilings. The problem is everybody's cars get flooded, and the poorest live in trailers, and can loose everything in one storm*
Wealth per capita is not higher than the US, and especially The Netherlands does not have a small coastline. For The Netherlands, if nothing was done, 8% of the country would be perminantly flooded (i.e. under water), and 25% would have regular flooding. But with consistent investment it rarly happens at all (poor or rich people).
In Belgium local flooding did happen in the late 20th century after serious rainfall. The problem was too much concrete, too much build up area. So more land was given up for percipitacion and more local storage of water and less drainpipes. Now rarely anyone has problems.
Point being, if the country (or region) as a whole takes the problem serious, it can be fixed. But not by doing it as individuals, but as a society, as a group. And the US is not good at working together for a common goal.
@@rsrs8632 it actually is.... it’s spelled * permanently*, * precipitation*, *seriously*, *drain pipes* and *rarely*. Belgium should have an “,” before you continue that sentence.
You’re interviewing people who build in flood zones... really. How about talking to people in Arizona, Utah, etc... yeah, that’s what I thought. I love paying extra taxes for people who intentionally build in risky areas. Thanks!
I just bought flood insurance 2 weeks ago. Closing on my 1st home in another 2 weeks. This was informative
Make sure that you buy the policy limits - 250k building 100k contents if you have a lot of belongings. I have personally witnessed families bankrupted because they bought a low limit policy of like 20,000 just to get their federal mortgage to qualify. This is especially important if you are in a Special flood hazard area. Its also important to understand basement limitations - did you know your first floor of your home may actually be considered a basement for NFIP purposes and you will get paid almost nothing if it floods?
Insurance is a scam. They make money denying your claims. Its fraud.
If you had an insurance claim that was denied fraudulently, call your insurance commissioner.
government insurance is a scam*
Real insurance is just insurance. You pay to avoid the chance of being ruined.
$$$ making tip, insure anything you can't afford to lose.
Your health, your lively hood (STD and LTD) and your home.
If your claim is denied and shouldn't be, then sue them if you believe they are not upholding their end of the contract. There are thousands of lawyers out there would who love to take your case.
Video doesn’t mention how this screws over folks who don’t live in risky areas by requiring them to buy flood insurance that only ends up subsidizing those who live on NYC and New Orleans. I found a property that was never going to flood and the program cost *$1,000* PER MONTH and didn’t even cover the cost of the property , and would likely not pay out according to the agent unless the basement was totally flooded and it moved i to the first floor.
It is insane to pay for people to live in places that get wiped out every 40 years by a storm, and it will supposedly get worse with climate change. It is immoral to force others to pay for it. Our ancestors traveled thousands of miles to get here, but people refuse to move across the county away from the flood zones and the government encourages this, go figure...
If the program cost over 1000 per month you were in a zone that was either very likely to flood or you had a misrating for your property. You need to hire a new insurance agent or call Fema to get your property rerated. 1000 per month is an insane rate for flood insurance. If you are living in a low risk zone like X, B, or C zones (similar to what you described as low risk) you would pay more like 800 a year. As for the basement issue yeh unfortunately NFIP offers very limited coverage for those
Hey i agree. I'm a great driver so why the hell am i forced to pay insurance. Ya ooops no one bring s that up. Forcing everyone to have car insurance should be ILLEGAL
@@bobspizza7444 I believe New Hampshire is the only state that doesn't require auto insurance. At fault drivers must pay to damages within x weeks or they get their drivers license suspended..
Don't build houses out of paper. Build out of concrete and bricks you wait for them to dry and you go back inside after a storm.
Houses in the USA are built with wood because it’s cheaper.
@@angelgjr1999 too bad don't complain when they fall apart
In my country woods are more expensive.
What if the house starts sinking?
@@sivartb7273 you build it on stable ground not on a slab
I love living in Pennsylvania. I don't have to worry about flooding, forest fires, earthquakes, and tornadoes are rare.
it is a great state for people who love to minimize their natural disaster risk. probably one of the best. the only dilemma with PA is there are nuke plants on either side of the state
I used to live there and we would get tornados every year that would knock the power out for a few days
@@shaneviola8848 What part of PA you use to live in?
@@lorddoma6637 the poconos, a small town called masthope with about 600 people.
@@shaneviola8848 OK yeah I use to live in Bushkill PA when I was little and then moved to Allentown. In Allentown we didn't have to worry much about tornados but the Poconos are definitely more prone to tornadoes.
Evict everyone living in a flood zone and pay them to move. Allocate the land to the national parks. This way we can still make money from it, but it's put to better use and people aren't hurt.
or build houses on stilts or stay clear of flood plains
Instead of the government wasting money on subsidizing these peoples insurance they should prevent new owners from buying in these areas and start buying their homes back for imminent domain in the name of flood plains.
My friend purchased flood insurance in Florida and after Hurricane Ike ,repaired the damage himself, used the left over $ tp pay off his debts and buy a new computer. His neighbor had np flood insurance and got free $ from the government. And purchased a new bass boat and lived in a popup camper in his driveway for a year.
In Puerto Rico, if your property is in the flooding maps from FEMA/Local Planning Board, you’re obliged to pay for a flood insurance in the monthly payments or they won’t finance the property.
This channel's videos are outstanding. Well done, super informative. Thank you.
Building stick frame homes in flood valleys or tornado regions is truly idiotic and unsustainable.
Lmao! Why do you think Hollywood makes movies like the wizard of Oz and there’s a hurricane coming and all the people that live there are a bunch of inbreed poor folks?! Lol they are mocking the lack of sense in humanity.... If people really understood the bigger picture, think like human history going all the way back to ancient Egypt, and then move forward to colonization, and industrial Revolution.... people don’t realize we are literally all slaves, and all the good land has been reserved for the elite and their families and all the poor slaves, the rejects of society, the low life’s have been literally put into a boat and dumped into countries like America... the chosen land is Europe(why the founding fathers ever left the crown is beyond me) and in particular the real elite have chosen New Zealand as the promise land so when $hit hits the fan and the world comes tumbling down, they will have their private airplanes fly them off to their mega mansions secluded in the most beautiful country on earth...
@@camerontaylor7471 yeh what you said here was true theres actually evidence the literal wizard of oz was about central banking en.wikipedia.org/wiki/Political_interpretations_of_The_Wonderful_Wizard_of_Oz#Monetary_policy
If FEMA has to bail a property out twice in a ten year period, they should pay replacement value for the house and land, and put the land into an environmental easement. That property should be returned to its natural ecosystem so it can perform flood mitigation duties. Also, FEMA should not in any circumstance pay any money to rebuild someones second home (im not counting rentals as a second home, since it is not occupied by the landlord and provides living space for a seperate family). If you have the money for a winter cottage in the Florida Keyes, you can pay to rebuild it when it floods. Enough of my tax dollars go to bailing out the rich as it is
What you said about flooding multiple times actually happens. If someone floods too much FEMA will boot them out of the program . They either get offered to elevate or buyout. If you have interest in this issue look up "FEMA ICC Increased cost of compliance coverage" as well as "FEMA severe repetitive loss property"
@@robertfleming2432 I agree, but how does that square with the entirety of New Orleans where it has been totally flooded and rebuilt several times in the past twenty years.
Well, seatbelts have led to people crashing their cars more often... so yeah, humans are weird.
Curious! I can't find any sources regarding this. Are you talking about the rate of crashes or just number of crashes? Remember, a rising tide lifts all boats. More people driving obviously lead to more crashes.
@@MrVHI123 I was referring to the Peltzman Effect. Peltzman analyzed the effects of seatbelt legislation and found that people drove more recklessly after seatbelts were introduced, because they felt safer.
Although Peltzman's calculations turned out to be full of errors, his risk compensation theory still helps to explain why many safety interventions are less helpful than expected.
@@Quickonomics was that per capita? If not it could simpley be population growth from baby boomers reaching driving age when seatbelts were intraduced. Also baby boomers were brand new drivers and have the highest likelyhood of an accident next to the very old which would have been people born in the 19th century at the time
@@Quickonomics Interesting! I read an article somewhere about professional football athletes with their protective gears. Apparently it makes them play more aggressively and recklessly.
A manager of one of the largest insurance companies told me that they don't want to insure hurricane endangered homes anymore.
insurance companies likely have internal models showing how many areas are going to fail critically due to the effects of global warming. My sincerest advice for those who live in coastal flood zones is to get out as soon as possible because once the herd begins to sell en masse you won't be able to sell. The people who get out early and head to high ground will come out way ahead
Before buying or building take a look at a terrain map with elevation info, that will give a pretty good idea Of terrain composition best suited for a foundation, and Flood risk areas. You can find those in the local library.
Yes right, for some northern parts of USA the base flood elevation rastor are available on internet
Mangrove trees prevent flooding.
One of the best reviews of the NFIP ever presented. This video was very balanced.
nfip is going to fail, no matter how much the government tries to lie about it or plug the gaps. longbets.org/847/
Raise the rates for people in the worst zones my gosh this is crazy and catastrophic we are literally doomed
Make a concrete foundation/footing. Have 2 solid water proof pumps/generators in said basement. Pump out the water as the basement is flooding
Will not work in a serious flooding event, though that might work for minor localized flash floods. In a serious flooding event there is nowhere for the pumped drainage to go as the local area will be totally inundated.
private insurance companies shouldn't exist. there is no market pressure for them to serve their customers appropriately, the only market forces in insurance exist solely to minimise payouts and punish customers as much as possible.
When it comes to flood insurance none of the key players involved agree with what you have to say. Legislators, companies, private citizens and consumers are waking up to the big failures of the NFIP. The federal government is underwriting/subsidizing trillions of dollars worth of liability in zones that are soon due to be ruined by global warming. Its better to offload the risk to private insurers and prevent the taxpayer from being wrecked. The only group of people who are hardcore against NFIP reform are probably some of the people who manage the program at FEMA and the smallish % of the policyholders who live in severe repetitive loss areas.
I agree with what you say when it comes to health insurance and some other sectors but with flood/homeowners private is best. The claims process is cut and dry unless there are hard to define structural issues involved. If an insurance company tries to lowball the insurance commissioner will tear them a new one and possibly even ask for a penalty for lowballing. There is absolutely no reason for the federal government to be involved so intimately with flood insurance beyond setting the general guidelines on what flood policies should look like
Sadly, it seems the majority of the worlds land is prone to flooding. Waterways, rivers and coastlines is where man prefers to build because the water provides so much opportunity for farming and commerce. There is not a single human settlement that can sustain itself without being near a water way of some kind so the occasional flooding has to be expected. No home is safe from flooding.
Is this rich people with beach houses problem?
partially
I’m not rich, not near a beach and been through this. Afterwards I was more aware of flooding events each time I caught them on the news. Plenty of cities/regions inland get flash floods. Think of any random city
Good chance you came up with one near a body of water
@@Maverickgouda sorry to hear that. Hopefully you all are safe.
@@hid400 yeah, thank you! It was 4 years ago.
No. They just can complain because they got money.
Most floodplains are where low income communities build because of the affordable land. They are the most impacted tbh.
It’s because the billions the insurance companies collect are being invested making them more billions, then when a flood happens these companies can’t just get all the money all at once.. simple
totally false information as 90%+ of flood policies in the US are federally backed and paid out promptly.
FL resident here. Nfip costs me 1900. Private costs me 850. I signed up for private and went to cancel nfip. They say you can't cancel until your policy is over. This is the only type of insurance that does this, doesn't seem like nfip wants to let anyone go
Are you stuck with two insurance now
@@nordette yup
the NFIP is going to fail. They are trying to get more people into the program to bail out the high risk properties. Its only a matter of time before it comes crumbling down: longbets.org/847/. Private is likely to fail as well at some point but not as catastrophically as NFIP will
When can we build flood resistant house?
NFIP does no audits. My floodway is full of sand-mines that raise the hight of their blue chloride-ponds higher than the 500yr flooding. How is the floodway suppose to work if there is water stored in it that sits higher than the floodwater.
'Risk' . . . is the primary factor, most fail to comprehend, consider . . . 😬
Any rebuilds should be required to be built on stilts high enough to stay dry in a hundred year storm, 50 years from now. If you build on the coast that basically means you would have a three story house and only live on the top floor and maybe have parking on the first since sea levelrise plus storm surge would probably equal about 16 feet higher water levels during a severe storm in 50 years.
thats more or less already required by NFIP
Minimize subsidies. Move inland if you can’t afford the premiums. No subsidies for million dollar homes.
I agree 100% with your idea the problem is when the subsidies are yanked its going to be a lot of financial loss, and will crash the markets. When this happens its basically going to be a disorderly coastal retreat and that probably scared the hell out of a lot of people. National security etc. But the NFIP cannot go on forever without big reform
@@robertfleming2432 oh no! Gotta save the markets ... 🙄🙄🙄
@@camerontaylor7471 Markets = real world impact on real people. You may be a smug person who just explodes when you hear the word "markets" because you have some ideological bias but let me explain the real world impact of what happens when the housing market will fail in this area:
People on the street
drugged out
dead
suicidal
no belongings, no nothing
you may have a desire to see bezos lose his wealth but you must remember the normal people are going to be in big distress when they lose their home equity
They want to live where it floods or near the ocean, fine. Pay more for the risk. Problem solved.
If you can’t afford significant flood damage then you probably shouldn’t invest in that housing location. Otherwise look to get out of there. There’s a compromise to living in proximity to beautiful rivers, oceans, beaches, etc. If you’re in a shithole that floods then I’m very sorry for you.
Yes because 6 inches of sea level level rise In 100 years is really gonna make a Yuge difference. Actually not really
Its already making a massive difference, and 6 inches is not the 100 year estimate. Try more like several meters
People should make houses without wall windows and doors and just make their windows made of stone and their passage should be ladders instead and if they want to put something to the house they should make a ramp like a castle. 😛
Insurance in the biggest scam of all time after Banks
Until you need it...
@@Swagalious689 yup and thats the problem 99.9% of the people never gonna need it and we all pay for it because it a law in some case
Same with seatbelts and tolls who tf would seatbelts hurt other than yourself? They made it so that they could collect more fines
@@furrycircuitry2378 I think troll are using internet not car i dont understand your point and seatbelt are made for collecting less body part in the car after a crash not to collect more fines
Don't allow people to build in flood zones. Only allow one flood claim per life of ownership, then allow buyout and destroy the building and not allow rebuild.
Makes no sense. If bad drainage leads to a flood, why should a house owner suffer?
@@vasu6494 Suffer? They're being fully compensated. The only one who suffers financially here is the taxpayer.
The NFIP program already enforces buyouts on severe repetitive loss properties. Its not once per lifetime though. What you are proposing just would never work from an insurance standpoint. Its hard to get into details why in this brief forum but basically it comes down to the fact that not every loss is a total loss and this would create impossible mortgage underwriting issues
I am not saying private flood insurance can't cover them more than once during the lifetime of ownership, I am saying government underwritten flood insurance gives you one life line and then a second life line only if a buyout takes place, if a home floods twice, we don't need to pay for a third or forth or whatever, the home is in the wrong location or elevation and either needs to be destroyed or raised.
As someone who's worked in Emergency Management since 2017, I can tell you for a fact that Flood Insurance is extremely expensive and unaffordable for most homeowners who need it. FEMA is the de facto Flood Insurance for the U.S.
I am in an AE zone but not near any water. I own a small home. My insurance company told me $10k a year. I’m going to have to move now!
Just because you csn get insurance doesn't mean you should build in flood zones. Build on stilts. New construction actually causes flooding for older houses too, not there fault.
If 1 single inch is the problem, just make the house higher. What makes people want to live near a body of water anyway? Do they go swimming regularly?
The 1 inch is only provided as an example of what the minimum flood can do - most floods are going to be much higher than this level. Its very expensive to elevate a home, especially one that has already been built. Its a great idea to elevate but so many properties are from an older era where that was not done. Flood risk was lower in the past and a lot of areas that did not flood often in the past flood more often now. Also, many of the properties that flood are not even close to a body of water, they could be miles away. What makes people want to live in these areas is they are close to jobs.
NFIP is a great idea but the enforcement of the rules inside local governments is non-existent to the point of being corrupt.
Interesting
The problem with flood insurance is they love collecting outrageou$ premium$ yet refusing to pay their liabilities$.
As usual their busine$$ is a racket; interested ONLY in huge CEO $alarie$ and profiteering.... They always wait for the taxpayers to pick-up the tab, (thru declared disaster areas) while big insurance book$ the profit$.
It is past time for big insurance to PAY FIRST (their full limits of liability) before ANY disaster relief is granted.
FEMA is 20 billion overdrawn, lol. If anything the Federal government should pay out even less.
Why do you liberals love spending other People’s money? What’s wrong with you?
@@igit_7296 As I said: BIG INSURANCE is a RACKET.
THEY must pay their insureds' losses to avoid taxpayers having to pay for them. We pay insurance premium$ in the billion$ each year while BIG INSURANCE avoids paying for the risks THEY are being PAID FOR.
If YOU thing that's wrong with me, then keep going through the world with your eyes & mind closed.
@@pthomas5892 you are confused.
Private insurance doesn’t provide flood insurance in Florida. There is no CEO getting rich off of it because no company wants any part of it.
FEMA provides flood insurance through their national policy that they offer… And there is no CEO of FEMA. It’s a government agency. Do you understand now?
@@pthomas5892 You are confused. Big insurance doesn’t provide flood insurance.
FEMA does. FEMA is a government agency, it has no CEO, and it’s a non-profit (since it’s an arm of the Federal Government).
Writing in capital letters doesn’t really make your points. You lack an understanding of how flood insurance is disbursed in high-risk areas.
FEMA representatives want you not to get involved with FEMA. How can THAT not be a red flag?
$700/yr for Zone A is nowhere near accurate. After entering escrow on my home in the Mojave Desert, I was told my NFIP policy would be $2,000/yr for a $250,000 policy. I’ve since gone private and gotten close to $700.
Try to go for a re rating which is a procedure that may determine you were mapped into the incorrect flood zone. You may also be able to obtain what is known as an elevation certificate. If there is a 1300 dollar difference between FEMA and private that seems unusual to me. Also very important to check if there are any significant policy difference b/w the FEMA standard flood insurance policy and your private insurer. Its possible your private insurer could have clauses in it that are not as much in your favor than NFIP. Generally private policies are only purchased for ultra high risk properties or to provide coverage in excess of the NFIP limits - they really are a niche market segment at this point in time, you almost always want to get NFIP because its cheaper due to the federal subsidies.
If you truly are in an A zone and not a misrated zone though then it probably wont make NFIP cheaper than private
Volcanos are cool but we don’t build our homes next to them, beaches are cool but for some reason people are still trying to build homes next to them. It’s common sense to not build a home where giant forces of nature come frequently.
Its not just beaches. Flooding from storms can go very far inland from severe rain. The economic benefit of having infrastructure in these areas is much higher than the cost so that is why it is done. Unfortunately people will always be looking to live somewhere close to jobs, ports, infrastructure. the real question is how to build the best flood control and elevation best practices
Ignores the people living on the big island or Hawaii which is literally one giant volcano...
@@AdamSmith-gs2dv haha true but you know what I meant
The worst part is that this insurance isn't actually available to everyone who may have flooding....
If the chance of the event happening is to high insurance companies dont want to insurance it regardless how high the premiums would be. They just aren't trying to go bankrupt.
NFIP will insure almost anyone. If you are having specific issues getting NFIP insurance then its probably because no one has taken on the task of getting you to be designated as a floodplain management area. you can discuss that with your local community, go to fema and get your community rated.
I live in Charleston SC. It gets flooded here now at high tide on a clear day now. People kayak in the streets. I plan on moving away from the coast at this point.
move ASAP and if you own real estate there get out before the NFIP fails and your mortgage and home both go underwater.
Its 3 am and I have nothing better to do than watch a video about the failing flood insurance industry. What a sad life i live :(
"I built my house in a swamp turned into a town that's miles from the ocean and surrounded by water and I want the insurance companies to pay for all the damage because it's their responsibility to cover easily mitigated losses"
🤦♂️
My hose is 15 m. above the sea level and 300 m. from the sea, no problem.
In a house made of bricks and with ceramic floor tiles, with 1in flood, the costs are 20 dollars in cleaning supplies (if that much).
I live in Arizona. What water. Lol. We’re just super hot
Government welfare for the rich? I wonder how many of these people complain about people and food lines or who get government assistance
NFIP mostly helps poor and middle class homeowners. The program is unsustainable but to say its some kind of con job by the rich is just not true. The program was founded in 1968 by the johnson administration to help mostly poor southerners in hurricane areas. The policy limit for a building claim under the NFIP is 250,000 with 100,000 for contents for a 350k maximum. Its literally impossible to buy a policy for higher than this. Rich people do not have 250k homes and 100k contents.
@@robertfleming2432 it helps rich people who have multiple homes. A program that is funded by taxpayers that only evolves a certain segment of the population will never be sustainable. If you're going to have a government program then it should cover everyone. Rich people take advantage of this more than the poor and rich people are the ones who get that big ticket checks. Don't tell me how life works If you are a cable news junkie choking out the propaganda
Hello Ian. 2022. 😢
Because there are no law's governing the industry the same when it comes to renters insurance.
No, you're absolutely wrong and its almost like you didn't even watch the video. the NFIP is LITERALLY a top down federally managed program - 95% of the programs core functions are run by a government official . The only private sector involvement with the NFIP are claims payouts and policy marketing and even there fema has the final say
how can you by a home without knowing the flood risk? other than common sense . . i.e. ground floor of house is higher than the crown of the nearest road. Here in Britain before you buy a house the solicitor has by law , got to list all local advisories, along with the title search. Before a property is built on a flood plain, the local water board/ environment agency advises the construction company, up to and including whether a building should be built.
All of what you mentioned here has to happen in the US. The main issue is that many of these homes were built way back before all of these agencies were in place. Some of these homes are like, pre 1900. And because of the shifting climate baseline the flooding risk is changing. Its hard for the average citizen (i often call them cattle/sheep) to perceive the increasing levels of risk
@@robertfleming2432 makes sense . .
0:55 "If you live somewhere where it rains, you need flood insurance" - says the person trying to sell you insurance.... ever think of a hill?
Limited natural hills are available in floodplains. The dirt work to grade and make your own hill is expensive and even more so if you try to elevate existing construction through dirt work. Not a realistic option for the vast majority of people living in a coastal floodplain.
@@robertfleming2432 Yea, hills around the coast doesnt really exist.... doesnt disprove my statement that most homeowners will never experience flood issues... hence not needing it if you "live in a place that rains".... In that case, I got some volcanoe insurance to sell you, cause magma is under all our feet 😆
Ya it’s funny 1% of the policy cost 30% of the claims. But if you insure the entire nation then most people never use the insurance. So 1% might be correct. Also they limit the risk to 250k building and 100k inside stuff. The kicker is private flood insurance which covers most of the house cost(million dollar coastal homes). This keeps people from buying a nice house in a high risk area. What I think sucks if they change the map and someone cost shoots way up. Remember most people never file a claim. Yes regions get hit but not everyplace. Also national flood insurance can’t carry a surplus which means it’s on a year to year cost.
Yeah, it sucks if someone's costs go way up, but that's the point. If you can't afford it, you shouldn't live there any more. The taxpayer shouldn't be subsidizing people's bad building investments.
@@AllUpOns wondering if it’s private insurance companies that are abusing the system? The underwriter for most private flood insurance is the government. That might be the real problem
@@watomb " The underwriter for most private flood insurance is the government." WRONG WRONG WRONG. There is no federal underwriting for non-NFIP private policies. The restrictive NFIP standards and limits are why we are getting private policies in the first place. The Federal NFIP policies are often sold by companies but their role in the NFIP is more as salesmen - they market for the NFIP and handle the claims process. Under the NFIP there is very little incentive for the private companies that do claims administration to screw the policyholder . The WYO carriers are probably the best actors in the entire NFIP system. The rare case was statefarm, which you can read about here. en.wikipedia.org/wiki/Rigsby_sisters
@@robertfleming2432 ya up to 250k is under written after that it’s on private insurance. Anyways good point
And why should people who are smart and don't buy homes near pretty lakes and rivers pay for the morons who do?
I demand to build my summerhouse in a floodplain and I demand the government pay for it
The rich and well off want to build mansions or residences on the waterfront, on beaches, rivers ,traditional flood plains and someone has to pay for this .We all do with higher premiums not just them as the insurance companies are for profit.If they made the ones on the water pay the true cost ,yes it is high now and would be really high, but why should we all help them.
It's not just flood insurance! I'm 68 and never in my life have I gotten a square deal from an insurance company, ever! The world would be better off without them.
Okay did you try keeping the house in a bowl of rice?
I have no regrets.
That's not what your tone said
“All americans are in trouble”
Also news: if you live somewhere it rain you need flood insurance.
Arizona: 💀
I’ve worked on flood zones in Flagstaff and Pheonix.
@@JasonSmith-eo2hu - Try Havasu or Yuma. Rains like 2x a year lol
is there a tornado insurance there too?
yes, but not federally run/backed as NFIP is
They don’t cover anyways so what’s the use?
Untrue. Flood insurance is required to pay out by federal law - if your insurance company or NFIP direct policy is not paying you you need to call your insurance commissioner, your congressman/woman, and your attorney general
In Brazil when is in flood risk area they just elevate the house
Make a law, all property in flood zones must be made flood proof. Make current properties flood proof by force. The tenant will lose the property after death, unless they bought it, or payed for it. By force means, no fema payouts if flooded, unless they deal.
The existing law requires new properties meet a certain standard of floodplain compliance. There is no such thing as "flood proof" and never will be, especially with AGW going on. Current properties are forced to either sell or elevate through NFIP program mechanisms if they flood too many times. The problem is that the criterion to force people out of the program aren't strong enough. The law will unlikely never be changed - anyone who rams through significant reforms like they tried to do in BW12 will lose florida and the presidency. neither party wants to sign up for that to keep this program sustainable
@@robertfleming2432 Sorry didnt reply earlier. Update stopped. Anyway you are right. Pipe dreams. Flood it is.
The ONLY thing the NFIP should be doing is buying out flooded properties. The government should not be helping yuppies afford beach houses.
5:29 - That looks like an atoll.
I sent iota to pacific as polo thorough pacific for Shanghai
Government shouldn’t be running insurance. Private market would do much better job. USA going deep into debt is not good
There is some limited good news: More private flood policies are being issued every year for flood. FEMA is encouraging the private sector to take on the risky assets.
Laughes in Great Lakes
So, why are we not recutting the inland waterways, fom lakes, ponds, streams, rivers, sideditches, etc. Water displacement
that will do nothing to solve the problem.
@@robertfleming2432 Maybe not in the grand scheme but the Dutch have been doing it for years.
@@ev1558 That is true but the key difference is US has thousands of miles of coastline in an active tropical system basin whereas the dutch have hundreds and never receive tropical systems. Flood control infrastructure is something we have here but its not a cure all because the rate of rainfall often exceeds its ability to cope. Humans can only do so much with current technology to manage floods.
@@robertfleming2432 Agreed. Where I am humans are not doing much in the way of water management. Every year the same areas flood yet, we literally don't work on water displacement methods, At least not to any scale.
Time to short insurance stocks like Metlife Travelers AIG Prudential
no use, NFIP does all the underwriting on these programs.
They are smart enough to not write these policies
I would like to see a comparison of this to earthquake insurance for Californians
earthquake insurance is private run and rates low
I talked to a lot prople including one programmer who worked at insurance company?
1 You have to pay high deductible. If 9 earthquake comes, you have to pay a lot money. Then insurance compensates after the high deductible. May as well save the premium to fix my crappy house.
2 if 9 does come, insurance companies may collapse first. Not sure if it is true, but i am not taking that risk
@@commentorsilensor3734 Yeh its possible if a 9 quake would come on specific spots on earth that it would wipe out the insurance companies and most likely the entire financial system of some nations
The failure is that people aren't buying it.