My house is in an area that has never flooded, but people close to me had their houses destroyed in a freak flood recently, and it got me wondering.
Flood insurance is freakishly expensive. Do they really expect people to spend half of their lives paying off a destroyed house that they don’t even have any more?
Paying a mortgage is NOT paying for a house. it is paying for cash money someone was given that they spent on a house. you are repaying, not buying a house, you already bought it.
Insurance in a non-flood zone costs about 25 a year. I live in a 1000 year plain (non-flood) zone and pay that just in case something that happens once in 1000 years just happens to occur.
Flood insurance is expensive for two reasons – first, insurers know that if a flood happens, it’s going to cost them a lot of money to pay out on policies; and second, insurance works because the number of people paying for policies covers the amount paid out in claims, but not a ton of people have flood insurance in the first place (because a lot of them don’t need it).
Of course it sucks to have your house flooded, have no insurance, and still need to pay it off. But the reality is that people should inform themselves and never buy a house in a flood plain (that’s an area of land that geologists know can flood – even if it hasn’t flooded within recent memory). I doubt you live in a place that "has never flooded" – it just hasn’t flooded as long as anyone can remember.
If there was no risk at all of flood, then flood insurance would be minimal. It’s a very wise investment.
The property would be foreclosed upon. The bank would take whatever value is left to the property.
It is very unlikely (almost an impossibility) they would have to pay off the house for the rest of their lives, but their credit would take a hit
No, and that is why they file for bankruptcy.
Flood insurance is only expensive IF you live in a flood zone…otherwise, it’s fairly cheap.
You would know by now if you lived in a flood zone because your mortgage company would have required you to carry flood insurance.
Call your insurance company and ASK for a quote, they’ll research your address, determine your zone, and then quote you a rate.
yes.
no one forced u to not buy it.
put up a tent on your prop and slowly rebuild.
do one room at a time
It’s loss you are going to take. It’s like drive without Auto Insurance. You can’t get your car fix unless you pay for it or you have insurance.
If your house gets destroyed in a flood, file bankruptcy and include the home. That way you will not only have a fresh start, but the bank cannot come after you for the money.