weird news stories: National Flood Insurance Program pays $2.3 million for $153000 ...

Sunday, August 28, 2011

National Flood Insurance Program pays $2.3 million for $153000 ...

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Taxpayers Will Pay for This Over and Over

In?a?flood claim?case, the owner of a $153,000?Alabama home was paid $2.3 million in multiple recurring claims according to FEMA records.

FEMA records document many cases such as a $70,000 property?whose owners were?paid the aggregate of? $663,000 resulting from 34 seperate claims.

The office for Government Flood Insurance Program?(NFID) says that people collect millions of dollars as a result of recurring claims and it?s all legal.

Taxpayers should expect to pay the costs for those shacks on stilts along the Atlantic coast that will get washed away by Hurricane Irene?through National Flood Insurance Program, government subsidized coverage?that pays up to $350,000 for residential exterior and interior?losses and $500,000 for commercial claims.

National Flood Insurance can cost as little as $129 per year depending upon location in a flood area?according to FEMA and Floodsmart.gov.

The average full payout policy costs approximately $600 about 50% less expensive than?a private insurers cost to a consumer?for an average $250,000 home of 2,000 square feet in the U.S.

NFIP?is broke, insolvent?and about $18billion in debt and covered as much?in claims since Hurricane Katrina.

The program needs to borrow?more taxpayer?dollars authorized by the Congress as it continues to pay damages from flooding or mud slides? for the same property claims.

According to Floodsmart.gov, a 6 inch flood to a 2,000 square foot home could cost about $39,000 in repairs and damage vs a 4 foot flood which could cost approximately $75,000.

Flood Insurance is issued?through a network of approximately 90 subsidized private insurers who are waiting for?Congress to return from its recess and vote, shortly after Labor Day, to?soak the?taxpayers by adding more?tax dollars?to?another failing government sposored program, the NFIP.

Which states?have the most claims along the eastern seaboard? New Jersey and New York with?52,637 and that?s more than?Maine, Massachusetts, Delaware, Rhode Island, Maryland, DC?and?Connecticut combined with?16203.

Government records show?the entire east coast block of states?has filed more flood claims (68,840) than Florida, Georgia, South and North Carolina combined with 68,779 leaving any statitician to wonder if flood insurance claims are a cottage industry along the east coast given the general track of severe hurricanes across the south since 1978.