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ET Awful

(24,753 posts)
Fri Sep 1, 2017, 04:46 PM Sep 2017

I knew this was coming. . . Hurricane Harvey: 70% of home damage costs aren't covered by insurance

Apologies if it's already been posted. . .

http://money.cnn.com/2017/09/01/news/hurricane-harvey-cost-damage-homes-flood/index.html

Hurricane Harvey: 70% of home damage costs aren't covered by insurance

New preliminary data from CoreLogic, a property analytics firm, predicts that between $25 billion and $37 billion worth of flood loss has hit homes across southeast Texas and southwest Louisiana. Only about $6.5 billion to $9.5 billion of those costs will be covered by insurers.

The report doesn't come as a complete surprise. A very small percentage of homes in Harvey's path were covered by flood insurance from the beleaguered National Flood Insurance Program -- a federally-funded program that is virtually the only flood protection available to homeowners.

Standard homeowners insurance policies cover damage from the high winds that are associated with a hurricane, but they don't cover damage from rain or flood waters. In the case of Harvey, many of the damaged homes weren't in high risk flood zones.

For Harvey victims who will be forced to recover without assistance from insurance, it's a daunting challenge. Hundreds of people have turned to online crowdfunding in recent days to make pleas for assistance.

(more at the link)

21 replies = new reply since forum marked as read
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I knew this was coming. . . Hurricane Harvey: 70% of home damage costs aren't covered by insurance (Original Post) ET Awful Sep 2017 OP
This message was self-deleted by its author Eliot Rosewater Sep 2017 #1
Those poor people Not Ruth Sep 2017 #2
Let's face it. Insurance is one of the biggest scams in America. world wide wally Sep 2017 #3
Agreed. Insurance wins when they don't pay out. What a racket. sarcasmo Sep 2017 #5
Insurance corporations have one MontanaMama Sep 2017 #7
protection money. the mob was great at it. probably still is. spanone Sep 2017 #14
Maybe they need to build somewhere else? FakeNoose Sep 2017 #4
Cue the lending companies MontanaMama Sep 2017 #6
Like Katrina, many of those people will have no choice but to walk away. procon Sep 2017 #8
No standard Homeowners policy covers damage from flood waters JenniferJuniper Sep 2017 #15
Thanks, that was my point too. nt procon Sep 2017 #16
Paul Ryan could tell you treestar Sep 2017 #9
I wonder of the houses flooded at the end when they drained the reservoir have a case world wide wally Sep 2017 #10
New Texas Insurance Rules kicked in today. Wellstone ruled Sep 2017 #11
Ted Cruz and John Cornyn will demand that non-TX taxpayers pick up this tab jpak Sep 2017 #12
I lost a chunk of my house JenniferJuniper Sep 2017 #13
What about those that dropped flood insurance ? MichMan Sep 2017 #17
He'd lived there for 32 years JenniferJuniper Sep 2017 #18
Rolled the dice and lost MichMan Sep 2017 #19
That is not $50 a month Not Ruth Sep 2017 #20
It is only a little above $25/mo. Even less reason to drop it MichMan Sep 2017 #21

Response to ET Awful (Original post)

world wide wally

(21,719 posts)
3. Let's face it. Insurance is one of the biggest scams in America.
Fri Sep 1, 2017, 04:54 PM
Sep 2017

They won't pay for anything if there is any way out of it at all.

MontanaMama

(23,242 posts)
7. Insurance corporations have one
Fri Sep 1, 2017, 05:00 PM
Sep 2017

responsibility and that is making a profit for their shareholders. That's it.

FakeNoose

(32,356 posts)
4. Maybe they need to build somewhere else?
Fri Sep 1, 2017, 04:58 PM
Sep 2017


Climate's changing, perimeters aren't safe. Nothing is like it used to be.

procon

(15,805 posts)
8. Like Katrina, many of those people will have no choice but to walk away.
Fri Sep 1, 2017, 05:01 PM
Sep 2017

This is a known flaw in the insurance industry, and it is self perpetuating, always putting profits over people. Most homeowners don't know that the so called flood insurance they thought covered them for flood damage, only applies to stuff like your sink overflowing or a pipe bursting, but not real, oh-my-god! rising waters.

That needs to change. With global warming creating dangerous risks in areas that were previously safe, home owners need insurance that is relevant to the times and current conditions with the events we're facing now.

JenniferJuniper

(4,496 posts)
15. No standard Homeowners policy covers damage from flood waters
Fri Sep 1, 2017, 05:24 PM
Sep 2017

Flood insurance must be purchased separately. Many people don't understand this.

And most people living in non-flood zones have no idea how much at risk they may be. I know I didn't.

 

Wellstone ruled

(34,661 posts)
11. New Texas Insurance Rules kicked in today.
Fri Sep 1, 2017, 05:04 PM
Sep 2017

Companies can delay payments,refuse to honor Payments. Limit liability quoted in Polices. Bottom line,in Texas,the new Law allows uninsurance . Just like required insurance only difference is,you get nothing for your Policy Payments.


State Farm and Farmers were a couple of the big movers behind this new scam.

JenniferJuniper

(4,496 posts)
13. I lost a chunk of my house
Fri Sep 1, 2017, 05:16 PM
Sep 2017

in back to back "500 year" storms in 2010. Not in a flood zone, so we never purchased flood insurance.

All FEMA could/would do is offer us a loan to cover the damages - at an interest rate higher than we could get with a fixed rate home equity loan with the same pay back period.

We're fortunate we still had equity, fortunate that it was only part of the house. I feel horrible for the people who lost it all and have no where to turn.

MichMan

(11,790 posts)
17. What about those that dropped flood insurance ?
Fri Sep 1, 2017, 05:38 PM
Sep 2017

What about those that made the decision not to buy flood insurance because they didn't want the expense? Should they be made whole anyway?

The person quoted in the link below, Mr Moore, dropped his flood insurance when the cost went up from $200 a year to $300 a year. That's only $50/month


https://www.washingtonpost.com/news/wonk/wp/2017/08/29/where-harvey-is-hitting-hardest-four-out-of-five-homeowners-lack-flood-insurance/?hpid=hp_hp-top-table-main_harveyinsurance-222pm%3Ahomepage%2Fstory&utm_term=.dc9c1df6af42


MichMan

(11,790 posts)
21. It is only a little above $25/mo. Even less reason to drop it
Sat Sep 2, 2017, 07:33 AM
Sep 2017

"Moore, a forklift driver, used to buy flood insurance from the government when it cost $200 a year, but he says the premium rose above $300, so he stopped. His home had never flooded before Harvey until now."


It does say "above $300" so that makes it a little over $25/month. Even less justification for dropping it. $1 per day.................

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