Should we be aware of Flood Insurance

[Sadie]

As far as I know, if you are appraising for market value, prior insurance claims have no impact on MVE. How repairs are paid for are beyond the scope of the assignment. Insurance, what kind and who pays are also beyond the scope of the assignment. The only concern is the condition of the subject property. I would think that in the process of getting a mortgage on a property, repairs the insurance paid for, but not completed would be a reason to re-negotiate the deal. A lender will not lend on a property without sufficient insurance. This is a legal problem and only an appraisal problem if you are working foran attorney involved.

 

[Sadie]

Bingo..........my point exactly; IE: you have a car accident (let's use $3,000 here, go to any other New Insurance Co. for a new policy (trying to lower your cost from $1200/yr.) and they will tell you that because you had a claim, your cost has risen to let's say $1800 (an example). The point is, you're in their system and cannot slide by the fact a "prior claim" has been made.

PS: I have no idea what the previous cost was, could that alone be the reason why the cost doubled, tripled?? I would hate to be an agent in the middle of that one.

From what I've read, the $8600 is standard home insurance and the $100k is from the flood insurance. But not positive

 

[Fernando]

I had a property which my insurance company would not renew and took me several months to find another.
The premium was double and it was an out of state insurance company not under CA jurisdiction. I hope it stays solvent when I need them in the future.
Anyway, I had the policies and many many many pages to read. I glanced over them after the 20th page.
Many disclaimers that protect the insurance company especially on prior issues to decline my claims.

 

[Sadie]

I had a property which my insurance company would not renew and took me several months to find another.
The premium was double and it was an out of state insurance company not under CA jurisdiction. I hope it stays solvent when I need them in the future.
Anyway, I had the policies and many many many pages to read. I glanced over them after the 20th page.
Many disclaimers that protect the insurance company especially on prior issues to decline my claims.

I think this is a thing now. My mom (in CA) who has had the same insurance co for over 50 years had to find new insurance. She was to scramble and find a new company before the old one lapsed. She was told by the insurance broker that the companies are refusing to renew a certain % each year.

 

[Terry Caldwell]

My flood ins. is over $900 per year. I was moved from zone X to A. Friends pay up to $1,600/year. Zone A has a 1% chance of flooding per year. Zone X is .5% or less I think. Both are an estmate at best.

After Ian some homeowners took insurance money and completed repairs themselves wifhout permits. This becomes a problem when they sell. I've run into several and completed them subject to C.O. from the county. Fortunately I had multiple comps that sold as is for reference to show the impact.

Its hard to understand how someone can sell a h I w that flooded without making repairs. They smell, there is a water line and mold on the walls, and norhing works. There is more to this story.

 

[JTip]

Why was the new owner sold a $8,600 policy If the previous claim repairs have not been made?

You can't double dip a claim.

OP said there was appliance damaged by flood, a covered loss, and the prior owner had the same claim. They did NOT replace the appliances (fixed, never damaged, whatever), and a second flood comes along with a new owner, the insurance company will not pay a SECOND time for the SAME item (confirmed by the serial number of the appliance).

Like a totaled car, you can buy it back from the insurance company for pennies on the dollar, and it will receive an "R" title, meaning the car is flagged for being totaled and can never receive coverage for damages again because.....they have already been paid.

I bet you a nickel the $8,600 policy has a line or sentence or term disclosing prior claims. They ALWAYS do.

 

[Terrel L. Shields]

Tennis ball size hail will bust out car glass.

The worst hail damage actually totaled a pickup. Softball sized. Beat the hood, top and left side to a pulp, not a 3" square that was undamaged. The windshield, side and back glass were destroyed. Even the tailgate and bed were damaged as well as the inside of the right side of the bed. The truck had a few hundred miles on it. A house near that pickup had holes punched through the deck and even broke rafter trusses. It killed several cows and horses.

 

[Mark K]

The worst hail damage actually totaled a pickup. Softball sized. Beat the hood, top and left side to a pulp, not a 3" square that was undamaged. The windshield, side and back glass were destroyed. Even the tailgate and bed were damaged as well as the inside of the right side of the bed. The truck had a few hundred miles on it. A house near that pickup had holes punched through the deck and even broke rafter trusses. It killed several cows and horses.

About 25 yrs ago we had baseball and softball size hail. Busted out car and house windows, went thru roof vents and thru interior ceilings. A buddy got hit in the head running from his battered car with all the glass busted out and needed about 15 stitches.

We have a few neighborhoods in flood zones in this area. The sales have shown a small difference in sales price but most of these areas are starter homes and the buyers don't think much about it....until they get flooded....and then they never buy in a flood zone again.

 

[J Grant]

About 25 yrs ago we had baseball and softball size hail. Busted out car and house windows, went thru roof vents and thru interior ceilings. A buddy got hit in the head running from his battered car with all the glass busted out and needed about 15 stitches.

We have a few neighborhoods in flood zones in this area. The sales have shown a small difference in sales price but most of these areas are starter homes and the buyers don't think much about it....until they get flooded....and then they never buy in a flood zone again.

The thing is, houses in non-flood zones can get flooded too, and those are the folks who often do not have insurance. It is a fallacy to believe only houses in flood zones get flooded and at least people who live in flood zones are required to carry a FEMA policy to make them whole after a loss.

 

[Terrel L. Shields]

until they get flooded....and then they never buy in a flood zone again.

We had a mis-surveyed area along the upper reaches of the White River. Some high dollar homes were built there and flooded. None had flood insurance. And they couldn't sue FEMA, so were stuck.

Near me is a new large lot subdivision of $700+k homes. The valley is "out" of the flood zone by the map. But in 1974, that whole valley was full of water. I know. I was setting on a hill on the other side of the road for 3 hours. Water was over the state highway bridge about 2' above the bannisters. I watched as a herd of heifers surrounded on a hump, chose the wrong direction and tried to swim across the creek now swollen to a quarter mile wide. As each went into the water they were swiftly taken downstream. They were found the next day on a golf course almost 3 miles away. 19 of the 20 survived and were beat to a pulp, skinned up, exhausted and a few developed pneumonia and had to be given antibiotics. They never found the 20th cow - no idea what happened to her. That flood was not unique in history. It happened in the big flood year of 1927 and in 1892. So, 50 years or so apart, seems we are due another such flood again.