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Good Info.

FEMA after the $31,900 pay out states you must have flood insurance. But you dont have to, they dont check. They say that to ensure it is 100% clear you are never getting a pay out again. Which you wont.

My biggest suprise is how few people who got flood insurance after sandy or new homeowners are unaware if you did not have the insurance July 2012 or earlier you are not grandfathered at the lower rates. I see folks near me buying houses regularly since August 2012 and all will get hit with higher rates.

I think the issue is once it breaks $3,600 a year folks will drop flood. If you mortgage is under 200k or you dont have a mortgage it is not worth it anymore. As you march from $300 a month to $2,000 a month more and more folks will drop out.

Anyhow who did not have a fema payout in Sandy has the safety net of $31,900 and even folks not eligible for a FEMA grant are still eligible for transitional housing or charity assistance.

If flood rates get really high you will see owners offering mortgages. For instance I could sell home with 20% down with a 4% mortgage and I do mortgage. It is away around flood insurance.

Tons and tons of homes in Katrina were not raised and just fixed. FEMA has an issue folks took the insurance pay out and just did cheap fixes or folks who got fema grant only did cheap fixes.

NYS rising I highly doubt will make folks get flood insurance. SBA did that which is why so many folks did not take SBA loan as they cant afford a loan and flood insurance.

Honestly, I will just self insure like many other people. I rather put 1k in my brokerage account each month than pay 1k in flood. Unless I get a big flood in first five years I will be ahead rolling dice again even though I lost this time.