Read more: http://www.upi.com/Top_News/US/2013/12/07/Flood-insurance-falls-short-for-many-Hurricane-Sandy-victims/UPI-58731386428771/#ixzz2muUrw8Dp
Low payouts by flood insurance leave many Sandy victims in a lurch
More than half of those who filed federal flood insurance claims after Hurricane Sandy hit the U.S. mid-Atlantic were paid enough to cover losses, records show.
Bills to Delay Flood Insurance Rate Hikes Stalled
Efforts to delay implementation of changes in the federal flood insurance program have run into roadblocks on both sides of Capitol Hill. The leaders of th
I am writing to let you know that we have thousands of members in the New York, New Jersey and across the nation who have several issues with the recent Wall Street Journal editorial about flood insurance.
Your editorial states that program primarily subsidizes the 1% wealthiest Americans.
There are several problems with this statement. First the maximum coverage you can purchase a NFIP flood insurance policy is for $250,000. There are not too many mansions in this price range. Also look at what communities were devastated during Superstorm Sandy; Belle Harbor, Rockaways, New Dorp, Seaside Heights, Toms River, Union Beach, etc.. Not many mansions in these towns. These are middle class working neighborhoods.
Secondly your article states FEMA is 24 Billion Dollars in the RED because of Katrina and other flood claims. I have ATTACHED a spreadsheet with data from the FEMA website (http://www.fema.gov/policy-claim-statistics-flood-insurance/policy-claim-statistics-flood-insurance/policy-claim-13-17) . The spreadsheet has all the income vs. all the claims paid out. According to this data FEMA should be 6 Billion dollars in the BLACK. Why is there such a discrepancy? Is it because the administration costs are so MASSIVE? (Over 50% of our premiums are spent to cover administrative costs to the Flood Insurance program).
Also FEMA is understating how many people will be affected. FEMA is only claiming 1 million of the 5.5 million homes in the program will have their flood insurance rise to exorbitant levels. The number will actually be over 80% of the 5.5 million homes.
But let’s assume it is only the 1 million homes. What do you think the financial ramifications will be to those 1 million homes when their flood insurance rises to from $1,000 a year to $20,000 or $30,000 a year annually? The properties will be virtually worthless? Who will bear the brunt of the bankruptcies and foreclosures caused by FEMA. What will the cost be the banks? What will the cost be to the municipalities (lost taxes from reduced property values)? What happens to the solvency of the Flood Insurance program when these million homes are in foreclosure and not paying into the flood insurance program?
In closing, if FEMA is charging $30,000 a year in flood insurance for a $250,000 policy. Their actuary rates are stating that this home should flood, for a complete loss, every 8 years. Does this sound even remotely accurate, actuarially sound or have any common sense?
Thank you in advance for your time
Statistics by Calendar Year | FEMA.gov
Coverage, Total by Calendar YearLoss Dollars Paid by Calendar YearNumber of Losses Paid by Calendar YearPolicies in Force, Total by Calendar YearPremium, Total by Calendar YearLast Updated: 06/24/2013 - 09:53
"THEY WERE HIT BY A FLOOD OF ANGRY PEOPLE"
Coastal Georgia residents say new flood insurance rates will devastate the area
BRUNSWICK | A couple of representatives of the federal flood insurance program came to College of Coastal Georgia Tuesday to discuss new higher rates that will be phased in coming years.
According to his office, Sweeney will be answering at least five questions every Thursday throughout the day via Twitter. His handle is @NJSenatePres.
EVERYONE PLEASE OPEN UP A TWITTER ACCOUNT AND SEND HIM YOUR CONCERNS.Power in numbers.I did.