What does everyone think of H.R. 3922 (Flood insurance buy-in.)

[SouthernDem2004]

http://www.house.gov/genetaylor/Rls0927.FloodInsurance.htm

The resoultion would allow people that did not have flood insurance and that did not live in a flood plain buy into the flood insurance program and get paid as if they had insurance at the time of the Hurricane. They would backpay 10 years of permiums and pay a 5% penality. They would also have to commit to stay in the program.

Thoughts? I am biased so I want thoughts from those detached from the event. I happen to be one of those that lost everything and did not have flood insurance.


SouthernDem2004

[Kenroy]

1. Interesting

So what would your cost be, and what would the payout be?

[SouthernDem2004]

2. About $4000 to $6000 to buy-in, payout up to $200,000. /nt

[Kenroy]

4. sounds like a deal then

I hope it passes, for your sake.

[finecraft]

3. I would do it in a heartbeat

You have to figure that if you rebuild in the same place your mortgage company would require flood insurance on the new house anyway, so why not pay the additional up front to cover the back premiums to get some money to pay for rebuilding? That's an additional $200,000 toward rebuilding costs that you won't have to finance through an SBA disaster loan. I think the SBA loans are max 30 years for around 3%, so you would be paying more in interest over the life of the loan on the $200,000 than what it would cost to repay the back premiums to get the cash upfront. Which way are you leaning?

[SouthernDem2004]

5. Currently trying to get an SBA loan. Use it to refinance my current

mortgage and use the additional amount to rebuild. I am trying to get a 30 year and 2.89% I believe. If I can not refinance I am just plain screwed. I can not afford my note and an additional loan to rebuild.

I have little faith in the resolution passing and even less faith in the government doing anything else to help the middle class.

[finecraft]

6. Keep the faith....I think this will pass

I live in the Louisiana 3rd (Charlie Melancon's district) and more than a third of the district got wiped out after Katrina and Rita. The oil companies, ship builders and oil service industry executives want this provision to pass. They know if it doesn't, their workers will not be able to afford to rebuild and they will lose their workforce. They can't afford that. They are scrambling now to find FEMA trailers for their employees, so they can stay in this area and not be forced to move. I think they have enough clout in Congress to get this provision passed. I'll keep my fingers crossed for you!