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Fri Jul 22, 2022, 07:26 PM

FEMA report: Flood insurance hikes will drive 1M from market

Source: Associated Press

FEMA report: Flood insurance hikes will drive 1M from market

By MICHAEL PHILLIS
July 22, 2022

ST. LOUIS (AP) — When questioned by members of Congress, the Federal Emergency Management Agency said its new update to the nation’s flood insurance program will prompt more people to sign up for coverage, even though many will pay more for it.

But in a FEMA report obtained by The Associated Press under the Freedom of Information Act, the agency estimates one million fewer Americans will buy flood insurance by the end of the decade — a sizable number of people at risk of catastrophic financial loss.

As climate change drives increased flood risk in many parts of the country, FEMA has updated its flood insurance program to more accurately reflect risk, but also make the program more solvent. It’s a response in part to criticism that taxpayers were funding big payouts when coastal mansions in risky locations flooded.

But nine senators from both parties expressed “serious concerns” about the new pricing system in a letter last September, after hearing that the agency’s internal numbers predicted policies would drop off by 20%. The next month FEMA told the AP those figures were “misleading” and “taken out of context” and that on the subject of how many people will be insured “there is no study or report to share.”

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Read more: https://apnews.com/article/floods-entertainment-federal-emergency-management-agency-congress-climate-and-environment-2f8fac768c73e52090eaa59f742ff48d

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Reply FEMA report: Flood insurance hikes will drive 1M from market (Original post)
Eugene Jul 22 OP
TreasonousBastard Jul 22 #1
mitch96 Jul 23 #2

Response to Eugene (Original post)

Fri Jul 22, 2022, 08:27 PM

1. 9We have flood insurance here in NY, too. I've heard people in storm paths say "Why bother? They'll

bail us out anyway."

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Response to Eugene (Original post)

Sat Jul 23, 2022, 10:30 AM

2. This is how it starts... Expensive insurance drives people out. No insurance, no loan.

No loan, prices drop. If you can afford to purchase with cash your good until the next storm destroys your place.
I see it like musical chairs. When the music stops (Cat 5 hurricane) you had better have a "insurance" chair to sit on or your §hit out of luck.. I think the coastal wealthy will sell well before this...YMMV
m'

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