Flood Insurance Premiums rise following Katrina and Sandy beyond what Some can Afford

Posted by PITHOCRATES - June 9th, 2013

Week in Review

Few things are as enjoyable as a beachfront view.  What a way to live.  Seeing the sunrise over the ocean.  Breathing that sea air.  Walking out your door to the water’s edge.  How lucky those lucky few are who live on the ocean’s edge.  Of course, there are some drawbacks to living on the ocean’s edge (see After Sandy, a new threat: Soaring flood insurance by Katie Zezima and Meghan Barr, Associated Press, posted 6/10/2013 on Yahoo! News).

George Kasimos has almost finished repairing flood damage to his waterfront home, but his Superstorm Sandy nightmare is far from over.

Like thousands of others in the hardest-hit coastal stretches of New Jersey and New York, his life is in limbo as he waits to see if tough new coastal rebuilding rules make it just too expensive for him to stay.

That’s because the federal government’s newly released advisory flood maps have put his Toms River home in the most vulnerable area — the “velocity zone.” If that sticks, he’d have to jack his house up 14 feet on stilts at a cost of $150,000 or face up to $30,000 a year in flood insurance premiums…

Officials are urging people to elevate their houses now because they are eligible for federal financial aid. About $350 million of New York City’s and $600 million of New Jersey’s Sandy relief funding has been allocated for the repair of single- and two-family homes, which could help defray the cost…

Several months before Sandy hit, Congress quietly passed the Biggert-Waters Flood Insurance Reform Act, a bill that authorized skyrocketing premium increases for people in flood-prone communities.

It was a desperate attempt to keep the program financially solvent after it was nearly bankrupted by an onslaught of claims from Hurricane Katrina, which forced the federal government to borrow about $17 billion from the Treasury.

Borrowing $17 billion from the Treasury?  That means borrowing $17 billion from the taxpayers.  And that’s the sad truth.  The people who don’t enjoy living on the ocean’s edge are the ones who end up paying for storm damage suffered by those living on the ocean’s edge.  People who shouldn’t be subsidizing someone’s dangerous home location.  Unless these people throw open their doors for all of us to come over and spend a few weeks on the beach with them.

Living on the ocean’s edge is both beautiful and dangerous.  Those who enjoy the beauty should pay for the privilege of enjoying that beauty.  Yes, it’s sad these people lost so much from Sandy.  But it was their choice to live there.  And they should pay all the costs required to live there.  Including all their insurance costs.  Like every other home owner must do that doesn’t have that gorgeous ocean view.

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