Helene Should Trigger a National Rethink of Home Insurance • Hacker News Board

Re: Helene Should Trigger a National Rethink of Home Insurance

#21

Post by nephy » Sat, Oct 05, 2024, 1:37 PM UTC

pjfin123 wrote: post #13

> Hurricane Helene crashed into an insurance sector facing a series of potentially existential questions, and a policy landscape in which the United States has left key decisions about how communities prepare for and recover from disasters in the hands of companies that exist to turn a profit—not provide protection. “Right now, we’re essentially leaving all of these decisions about land use and where risk mitigation…

Insurance companies are best incentivized and informed to make themselves a requirement, take your money, and then resist all efforts to actually pay you when you need them.

Re: Helene Should Trigger a National Rethink of Home Insurance

#22

Post by figglestar » Sat, Oct 05, 2024, 5:00 PM UTC

Isn't flood insurance already nationalized? My understanding was about 100 years ago these properties in flood zones were deemed un-insurable by the private industry and the government decided to fill in the gap, probably because a lot of wealthy landowners owned these properties.

https://en.wikipedia.org/wiki/National_Flood_Insurance_Progr...

Around here there is a local grocery store that has flooded requiring a complete gutting 3 times in the last 20 years. And they're rebuilding it again. Seems like insanity to me but if some one is willing to sell you subsidized insurance for this and there isn't an available plot of land infested with NIMBY red tape I can understand why they do it. I can't understand why anyone thinks this is a good way to set things up though.

Re: Helene Should Trigger a National Rethink of Home Insurance

#23

Post by Supermancho » Sat, Oct 05, 2024, 6:49 PM UTC

guidedlight wrote: post #12

Supermancho wrote: post #8

Earlier quoted context omitted.

> There is going to be a flood claim; I feel like I'm missing something. Wouldn't this be something to price into coverage? If it's a high risk, premiums up to 1/x of the home value. Don't like it? You can't afford to own the house.

In New Zealand after the Christchurch earthquake, the government condemned entire suburbs and made it illegal to build there. They then initiated an inspection of every multi-storey building, and allocated an NBS rating. Some buildings were condemned, and other buildings must be strengthened. It's almost impossible to sell these affected buildings. So in the US for a national insurance scheme to work, the government…

> the government would need to actively remove high risk properties.

Those that couldn't pay the insurance (like 100% of your property value, by risk), just like any other repossession would require the local govt to help take control of the property. The Fed's work would be in verifying valuations and setting profit margins. eg Regulation. Sounds good to me.

Re: Helene Should Trigger a National Rethink of Home Insurance

#24

Post by geoduck14 » Sat, Oct 05, 2024, 8:13 PM UTC

Supermancho wrote: post #8

lesuorac wrote: post #2

> “Extending mandatory coverage to all property owners,” in line with the approach taken in New Zealand, “could become thinkable in a way that it never has been before.” I'm not sure that's the correct solution here. Giving people flood insurance when they build on the beach in Florida is just a bad idea. There is going to be a flood claim; it's not really insuring against a risk, you know the risk is going to happen…

> There is going to be a flood claim; I feel like I'm missing something. Wouldn't this be something to price into coverage? If it's a high risk, premiums up to 1/x of the home value. Don't like it? You can't afford to own the house.

At the moment, the cost of flood insurance in the US is too cheap. That is, the price doesn't reflect the risk. It is a ticking time bomb.

On the other hand, if you are a home owner in a flood zone, the best "investment" you can make is buy flood insurance and hope for a flood.

Of note, flood insurance is nationalized, so probably will be backed by your tax dollars

Re: Helene Should Trigger a National Rethink of Home Insurance

#25

Post by gqcwwjtg » Sat, Oct 05, 2024, 8:58 PM UTC

nephy wrote: post #16

KennyBlanken wrote: post #5

No, it should trigger a national rethink on where we allow people to keep rebuilding over and over - or at least provide public services and funding - local, state, or federal for those areas.

I live 2 hours away from the mountains of North Carolina. I grew up in the foothills. You have no idea what you are talking about. People aren’t rebuilding here, “over and over.” This was a climate disaster full stop. If we as a species don’t get our shit together and stop poisoning our planet this will keep happening.

No no. If we don’t get our shit together this will get WORSE. If we do get our shit together this will still happen for a long long time.

Re: Helene Should Trigger a National Rethink of Home Insurance

#26

Post by Tostino » Sun, Oct 06, 2024, 8:24 AM UTC

cyanydeez wrote: post #19

Supermancho wrote: post #8

Earlier quoted context omitted.

> There is going to be a flood claim; I feel like I'm missing something. Wouldn't this be something to price into coverage? If it's a high risk, premiums up to 1/x of the home value. Don't like it? You can't afford to own the house.

At this point, the insurance is basically the cost of replacing your house, guaranteed in 10 years. These people barely can afford paying a 30 year mortgage. There's absolutely no logic behind insurance in Florida or anywhere along the coast. Even if 10 years is hyperbole, the real risks are absolutely not insurable.

There are a ton of waterfront homes here in fl on the gulf coast that haven't flooded in 50+ years since they were built...until last week.

It is absolutely not a guarantee that all waterfront property should just be written off. But some property absolutely should because this shit happens every 5 years.