I wonder how many homes are not covered due to lack of flood insurance or not being able to get coverage on Jersey Shores etc. ?

Anonymous writes: 

Flood insurance is easy to get. There is a "basic" version and an add-on. The basic version on our Jersey Seashore house cost $20 per $100k of coverage and the add-on was an extra $47, PER YEAR. It is subsidized by the Federal government, which is why it is so cheap. Only an idiot would not have it. And yes, there are idiots out there. If you are in a flood-prone area, you want as much insurance as you can get.

If you are not in the defined "flood plain" it can be difficult to get flood insurance because the Feds do not subsidize it. We also had a lakefront property that somehow managed to be out of the designated flood plain. Coverage for that property was about 3 times that of the beach house. And that property did have some minor flood damage, although I chose not to submit it.

Bill Herrmann adds:

Federally subsidized flood insurance is a very good example of government incentives pushing the economy in the wrong direction. Just as “Too Big to Fail” encourages some institutions to take larger risks then they would otherwise, federal subsidized flood insurance encourages building in the flood plain. (Which is generally not a good idea.)


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