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

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

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

    Nobody expected a 500-year flood this year? They'd alread had two of those this century.
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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.
    They likely all have the minimum coverage they're legally allowed to have.

    That, or flood insurance isn't included in the "full coverage" package.


    I mean, you could also ask why all living people in the US don't have life insurance, being as death is certain...
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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.
    Flood insurance is based on flood maps. My sister lives in Houston and they bought based on a flood map so their insurance was low $450 a year. The housing track across the road the insurance was over $4000.00 yearly. Flood insurance is affordable when don't live in a flood prone area.
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    Re: Why do so many homeowners in Houston not have flood insurance?

    Quote Originally Posted by PirateMk1 View Post
    Flood insurance is based on flood maps. My sister lives in Houston and they bought based on a flood map so their insurance was low $450 a year. The housing track across the road the insurance was over $4000.00 yearly. Flood insurance is affordable when don't live in a flood prone area.
    As you would expect.

    Just imagine the financial hit if the flood maps get changed to reflect actual probability of flooding (based on recent historical flooding)
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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.
    Because you can literally sit a homeowner down, explain the risks of not having, show them how they can afford it, show them in their own finances how it makes sense. And all they will see is another pointless monthly bill for something they can't see or feel. I've literally sat down with a man, tried to sell him life insurance, him tell me he didn't need no damn insurance, and then have him die 5 days later. Would have ruined his wife and family financially, his wife who was a jerk to me the entire time I was making my pitch. She was super sweet to me after I took her backdated check, and filled out a backdated application, and saved her house while giving her enough to live on for a year. I've had so many people kick me out of their house because I told them their work insurance was 10x as expensive as a private alternative and that there company chose a plan that wouldn't meet the minimum requirements of Obamacare. Only to have them call me back a month later, saying they got a letter from their insurance telling them they would need a supplemental plan to meet the minimum requirements. Most of the time they had their wife call. And then after I switched them, they would call again, amazed at how much different it was. Everyone thinks their work insurance is better than a private plan, depending on your health and age, that's just not true. Many smaller and midsize employers go for the cheapest, ****tiest, plans. And the largest employers, just hire enough people to keep everyone off full time.

    The point is, no one listens to their Financial Adviser about insurance. Even though 6 of our licenses are insurance based, and we can't legally lie, or misrepresent information in any way. Not until they've needed that insurance at some point. It's one of the reasons I hate old white people. They will literally cut off their own nose for the most stupid petty reasons. But, if you pull their ass out of the fire, they won't shut about you, so that brings in new business. But it's still annoying not rubbing it in their faces with a big fat I told you so.

    The woman who I backdated the application for, she had about 20 friends call me after that, and take out life insurance policies on their husbands without their husband knowing. About half of them have died, men do not live long, not long at all. Let me put it this way guys, if you make it past 70, you literally have your pick of women and statistically a good shot at 90. But only a few of us will make it to the promised land...

    Reading over this, it seems like I'm a terrible person, profiting off the misfortune of others. But really, my job is to convince people to shift their financial risk in case of misfortune. And it pisses me off when they don't listen. Because it's depressing when someone doesn't take the advice, and then later on needs it. I still have to work with the family to help prepare the estate, or rearrange their money to pay for expensive treatments. I can tell you it's a lot less depressing after I've handed them a big check, or cut their deductibles and out of pockets.

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

    Quote Originally Posted by ThoughtEx. View Post
    Because you can literally sit a homeowner down, explain the risks of not having, show them how they can afford it, show them in their own finances how it makes sense. And all they will see is another pointless monthly bill for something they can't see or feel. I've literally sat down with a man, tried to sell him life insurance, him tell me he didn't need no damn insurance, and then have him die 5 days later. Would have ruined his wife and family financially, his wife who was a jerk to me the entire time I was making my pitch. She was super sweet to me after I took her backdated check, and filled out a backdated application, and saved her house while giving her enough to live on for a year. I've had so many people kick me out of their house because I told them their work insurance was 10x as expensive as a private alternative and that there company chose a plan that wouldn't meet the minimum requirements of Obamacare. Only to have them call me back a month later, saying they got a letter from their insurance telling them they would need a supplemental plan to meet the minimum requirements. Most of the time they had their wife call. And then after I switched them, they would call again, amazed at how much different it was. Everyone thinks their work insurance is better than a private plan, depending on your health and age, that's just not true. Many smaller and midsize employers go for the cheapest, ****tiest, plans. And the largest employers, just hire enough people to keep everyone off full time.

    The point is, no one listens to their Financial Adviser about insurance. Even though 6 of our licenses are insurance based, and we can't legally lie, or misrepresent information in any way. Not until they've needed that insurance at some point. It's one of the reasons I hate old white people. They will literally cut off their own nose for the most stupid petty reasons. But, if you pull their ass out of the fire, they won't shut about you, so that brings in new business. But it's still annoying not rubbing it in their faces with a big fat I told you so.

    The woman who I backdated the application for, she had about 20 friends call me after that, and take out life insurance policies on their husbands without their husband knowing. About half of them have died, men do not live long, not long at all. Let me put it this way guys, if you make it past 70, you literally have your pick of women and statistically a good shot at 90. But only a few of us will make it to the promised land...

    Reading over this, it seems like I'm a terrible person, profiting off the misfortune of others. But really, my job is to convince people to shift their financial risk in case of misfortune. And it pisses me off when they don't listen. Because it's depressing when someone doesn't take the advice, and then later on needs it. I still have to work with the family to help prepare the estate, or rearrange their money to pay for expensive treatments. I can tell you it's a lot less depressing after I've handed them a big check, or cut their deductibles and out of pockets.
    As I expect taking a back dated check and application for life insurance after the person has died, could get you in serious trouble, you are far from a terrible person. Helping a person when it could have potentially got you charged with fraud and at the very least lose your job
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    Re: Why do so many homeowners in Houston not have flood insurance?

    Quote Originally Posted by Lord Tammerlain View Post
    As I expect taking a back dated check and application for life insurance after the person has died, could get you in serious trouble, you are far from a terrible person. Helping a person when it could have potentially got you charged with fraud and at the very least lose your job
    I wasn't to worried, insurance companies aren't heartless cruel places, it's an unwritten rule you got a period of about two weeks to backdate checks and applications before compliance takes notice. And most states Dept of Insurance don't look to closely at these situations, they got more heinous crimes to investigate. If you're working with a dedicated agent married to a specific group of companies, and not a broker that is basically just a personal shopper. You can usually get a lot of slack cut your way.

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

    Quote Originally Posted by Lord Tammerlain View Post
    As you would expect.

    Just imagine the financial hit if the flood maps get changed to reflect actual probability of flooding (based on recent historical flooding)
    Most do actually.
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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.
    It is not irresponsible. Self insuring is a thing that a lot of people do. We do it. I have a savings account that is specifically for home maintenance, including uninsured damage. The difference is, my account makes money instead of losing it and I don't have to ask for my money. I just withdraw it. To be totally honest, I have to ask my broker to sell the shares of mutual funds it is in and that takes a couple days. But, I have put $1,000 per year into this fund and I can pay for the restoration should my house be hit by a flood. We had a 100 years flood just a couple of years ago, so I'm not at all worried. If I had bought insurance and never used it, I'd be out all of that money. To me, it is irresponsible to buy insurance when you can self insure.

    As for Houston, very very little land is considered to be in the 500 year flood plane. http://www.harriscountyfemt.org/

    I looked for a satellite image of the entire county to see if I could tell what has and hasn't flooded, but I can't find one. I suspect this is much worse than the 500 year estimates.
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