Posted by Kacey (+3159) 11 years ago
So now that flood insurance has been mandated, can anyone tell me what flood insurance rates are? I have noticed that a lot of homes for sale will state that they have flood insurance in place. I assume that means it is at a lower rate.
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Posted by Amorette Allison (+11757) 11 years ago
The rates are grandfathered in at a lower amount but only for a year. They will go up next year. Amount depends on your lender. Some require the entire value of the house, even if you only owe a portion, some require coverage for just the mortgage amount. You'll need to chat with insurance agents (who, for the most part, do not seem to like flood insurance at all) and with your lender.
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Posted by Rick Kuchynka (+4463) 11 years ago
I thought I read FEMA was going to coast the grandfather rates for an additional year (two total)
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Posted by Amorette Allison (+11757) 11 years ago
That's possible. We are still going to end up sending millions away for nothing.
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Posted by WATTS (+223) 11 years ago
The grandfathered rates are actually looking like they will be around for 3 yrs. If you have not grandfathered a rate and have to buy in the new AE zone and estimate is 90,000 is about 900 dollars a year.
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Posted by Amorette Allison (+11757) 11 years ago
Oh, good. I haven't been keeping up lately. Ours was low because we have no basement.
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Posted by Mathew Schmitz (+284) 11 years ago
So many questions regarding this matter. Lets start with this one.
What would make flood insurance cost more the day after an arbitrary date set by whoever is running this dog and pony show? Seems to me if it costs $500 on todays date, it can't cost more tomorrow. It's not like your buying a perishable item. I also fail to see any logic in being required to buy insurance for the full value of your house if you have paid down the mortgage by 10's of thousands of dollars. I realize I just used insurance and logic in the same sentence, therefore making me very deserving of a beatdown.
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Posted by Mathew Schmitz (+284) 11 years ago
I just realized I used "your" incorrectly in my above post. Bring on the beatdowns.
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Posted by Rick Kuchynka (+4463) 11 years ago
It's government.

The only logic to it is political.
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Posted by WATTS (+223) 11 years ago
Matt,

It is actually fairly simple. On July 21st your home may have been in the old flood map of zone B (B=cheaper). On July 22nd Fema changed the maps and zoning for Miles City which made your house zone AE (AE=more expensive). Insurance companies do not set the standards on how much you have to carry, your mortgage company does. If you don't like replacement flood coverage you can refinance with a bank that only makes you cover your loan.
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Posted by David Schott (+17053) 11 years ago
I think maybe Matt was marveling at the concept of "grandfathering" a property in under the old insurance rate for some period of time. If the flood map changes and my house is suddenly deemed to be at higher risk of flood, it doesn't make sense to grandfather my house in at the old (less risk of flood) rate. That doesn't seem like prudent management for an insurance company.
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Posted by WATTS (+223) 11 years ago
I understand that but it is not the so called "insurance company" that did this. It was FEMA! The Feds screwed it up imagine that.
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Posted by David Schott (+17053) 11 years ago
Yes, and FEMA (the federal government) *is* the insurance company when it comes to the National Flood Insurance Program. So it's fair to say this insurance company does not appear to be prudently managed.

The private insurance companies assume none of the risk in selling this flood insurance. They just collect some money for providing the services of their agents, adjusters, billing, etc. Right?
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Posted by WATTS (+223) 11 years ago
David,

I am an insurance agent and don't need it explained. My point is that if Banks and the Feds weren't involved you would not "HAVE" to buy flood insurance. I don't like it happening to Miles City even if I am benefiting from it. It amazes me how insurance companies get a bad rap until somebody has a claim that needs paid!!
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Posted by Jan Cornutt (+275) 11 years ago
How much of this flood ins. money does FEMA get ? I heard they are broke.
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Posted by Buck Showalter (+4461) 11 years ago
It amazes me how insurance companies get a bad rap until somebody has a claim that needs paid!!


If I'm not mistaken, that's why insurance companies get a bad rap.
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Posted by WATTS (+223) 11 years ago
Jan- I would say that your statement is exactly why they picked little Miles City to rezone and make money because it mostly like is not gonna flood. averae policy premium per year is 500 or so and as an agent we get a minimal percentage of that. I think they are making some money here!

Buck- I agree some companies out there do not handle claims correctly! I do think though, only because I have seen it, insurance can really put people back on their feet after a bad loss!
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Posted by Bridgier (+9194) 11 years ago
Well, once they get the 17th amendment repealed, I'll bet they overhaul FEMA.
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Posted by Leif Ronning (+64) 11 years ago
I think the thing that is really sad here is that despite the hard work of the Mayor and the flood committee our representatives in Washington were unable to help us and head this off. They did get Great Falls a short reprieve but that will end next year and then they will get screwed. I went to several meetings with FEMA and the Corps of Engineers and even when it was pointed out to them that their maps made no sense they just kept shoving this down our throuts. I showed them on the map where I lived and they could not explain to me how I was in the new flood map and get screwed yet in a town as flat as a table the houses just a few blocks away are out and will save thousands in the next few years and their house value will be far greater than mine. I pointed out that this was just giving us the bill for the government insuring house built below sea level that were not surprizingly flooded and they had to pay. I also asked why my house built over a hundred years ago and has never had flood water anywhere near it, even if the first 50 years of its existence there was no levi at all and now it needs to be protected from flooding. I will not vote for any one running for election unless he swears on a bible that he will work hard to reverse this obvious screw job. Leif Ronning
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Posted by DJB (+99) 11 years ago
Leif, your right on the money concerning this matter. We are getting stomped on by our government as many other communities in our country. It makes no sense. I'm with you on not voting for anyone that promotes the idealism of FEMA.
Hang in there and continue to do an awesome job as councilman for our town. Thank you!
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