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Thread: Why do so many homeowners in Houston not have flood insurance?

  1. #41
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    Re: Why do so many homeowners in Houston not have flood insurance?

    Quote Originally Posted by KevinKohler View Post
    I have an FHA loan, which is a federally secured loan.
    The loan is insured, not you. Default on your payment whether because of total loss or simply failure to pay, the lender is made whole, you get Zip.

    Back to the topic. One reason that so many go uninsured is that many do not understand what their insurance covers. Another major reason is that many have paid off their mortgage and have elected to take the gamble. Knowingly or unknowingly. All too often it is those on fixed income, i.e. the seniors who elect to forgo coverage. They are also those least likely to have the ability to recover.

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    Re: Why do so many homeowners in Houston not have flood insurance?

    Quote Originally Posted by KevinKohler View Post
    Not state, federal requirement, if you have an FHA loan.
    Incorrect. FHA insures the lender against capital loss up to the loan value in the event of default, not you. PMI does he same thing, but privately. Neither has an obligation to a third party or you.

    You are never legally required to insure your property against physical loss.

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    Re: Why do so many homeowners in Houston not have flood insurance?

    Quote Originally Posted by jimbo View Post
    Incorrect. FHA insures the lender against capital loss up to the loan value in the event of default, not you. PMI does he same thing, but privately. Neither has an obligation to a third party or you.

    You are never legally required to insure your property against physical loss.
    Learn something new everyday.



    Especially here. Thanks!
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    Re: Why do so many homeowners in Houston not have flood insurance?

    Quote Originally Posted by KevinKohler View Post
    Learn something new everyday.



    Especially here. Thanks!
    Meanwhile, back to why so many end up uninsured. Ignorance plays a large part. The fact that more than a few would rather buy cigarettes than health insurance is also a factor. Some just don't get around to getting the job done.

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    Re: Why do so many homeowners in Houston not have flood insurance?

    Quote Originally Posted by jimbo View Post
    Meanwhile, back to why so many end up uninsured. Ignorance plays a large part. The fact that more than a few would rather buy cigarettes than health insurance is also a factor. Some just don't get around to getting the job done.
    Or beer. Don't forget the beer.
    Quote Originally Posted by calamity View Post
    Reports indicate that everyone knew he was hauling a bunch of guns up there. But, since you brought it up, there's something which should be illegal: guns that breakdown.

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    Re: Why do so many homeowners in Houston not have flood insurance?

    It's retarded to not have flood insurance especially if you live along the Gulf coast. That area is very prone to tropical storms and hurricanes that can easily dump a year's worth of rainfall in several days. Why would anyone knowingly live in a region like this and not be fully insured?

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    Re: Why do so many homeowners in Houston not have flood insurance?

    Quote Originally Posted by SouthernDemocrat View Post
    My wife is from Houston and almost all of her family is still down there. If you have ever been to Houston then you know that entire metro is at or near sea level (I think its about 50 feet above sea level on the North side of Houston). The area is covered in creeks, bayous, and canals. There are no hills until you get damn near to Huntsville. So even if you don't live in an official floodplain, you would be hard pressed to look at any of it and not think it couldn't potentially flood.

    Only about 2 in 10 of those flooded have flood insurance. I looked up the average cost of flood insurance for Texas, it is $482 dollars or about 40 dollars a month. https://www.valuepenguin.com/average...insurance#nogo

    So in the scheme of things, as a homeowner, its not that expensive. So why do so few home owners down there have it? I can see why folks in 3rd or 5th wards don't have it, those are impoverished areas where another $500 dollars a year might not be doable, but for all these folks in $250k homes and up, it just seems pretty irresponsible.
    1. Much of Houston is built on what used to be wetlands than are now paved over. Wetlands make great sponges. But with much of that sponge gone, where will all that excess water go?
    2. Many homeowners were told they were not living in a flood zone.

    Do these facts answer your question?

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    Re: Why do so many homeowners in Houston not have flood insurance?

    Why do so many homeowners in Houston not have flood insurance?
    because it's ****ing expensive, and they don't have the money, most likely.

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    Re: Why do so many homeowners in Houston not have flood insurance?

    I am not even remotely any kind of insurance expert but five bucks says that sometime in the next few years, flood insurance is going to change drastically.
    The maps are going to change drastically, the amount of coverage you can expect will change drastically, and the price, even for the most bare bones policy, will change drastically.

    As you might have noticed, I used some conjugation of the word "drastic" several times.
    Yeah, drastic, as in "drastically drastic", as in "Holy CRAP, flood insurance has gone through the roof and good God look at those deductibles!!"

    I'm not an expert but I bet it's damn near impossible to get flood insurance in Miami FL anymore, amirite?
    I bet Houston follows soon after.
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