Hi....I'm from the government and I'm here to help

This really has me worked up:  Yesterday my friend Joan Perry posted on Facebook how National Flood Insurance Program reform is causing flood insurance rates to go through the roof in her hometown of Charleston, SC, and probably many other places, too.  I mean rates so high people can't sell their homes and many may actually lose them to the banks.

Briefly, homeowners insurance does NOT cover loss due to flooding.  For that the federal government set up an insurance program available at subsidized rates for those living in coastal areas or other low-lying places.  But after hurricanes Katrina and Sandy the insurance fund is flat busted broke.  Congress passed reforms for the program that were meant to build up reserves again, but as usual, they've just f__ked things up royally.

A newspaper article reported one couple who had planned to sell their home for $349K and downsize, using the surplus to fund their retirement.  But then they found that their flood insurance premium has gone up 1,367% to $22,000 a year.  One quote was $38,000!  Now their home is worth exactly $0 as no one in their right mind will buy it.  One of Joan's commentors said her premium went from $1,200 to $8,000.  Joan's premium on her modest home more than doubled.

If the government wants to eliminate the subsidies, that's one thing.  You do it in increments over a few years time, NOT all in one massive blow.  How many people can afford to have their house payment (principle, interest, taxes, and insurance) go up $2,000 a month?  

Lenders understandably require flood insurance to protect their collateral, but if the owners can't afford it, and if they can't sell, do they just let their homes go back to the bank?

This is what happens when the government tries to directly run an insurance program.  Do they invest their excess premium income in times of low losses to build up their reserves like real insurance companies do?  Do they buy re-insurance (to spread the risk) like real insurance companies do?  I doubt they have that much business sense.

Congress....where do we get these morons?  And "the people" get screwed again.

S

It's always something!

Yesterday I went to the doctor to have him check out a bump on the bridge of my nose underneath where my glasses rest.  Turns out it's skin cancer.  Not a biggie, but still another nuisance that I have to deal with.  Of course they're reminding me to slather on the sun screen, but I hate the stuff.  Isn't a hat enough?  Jeez!

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Looks like it's "sink or swim" time for FEMA, pardon the pun.  The Federal Emergency Management Agency is responsible for coordinating federal, state, and local response to national emergencies, such as hurricane Sandy. (The actual work of putting things back right again still falls to the governors and the states.) 

They botched it big time after hurricane Katrina all but destroyed New Orleans.  Now we'll see if they've learned anything since.  Any time there's a federal bureaucracy involved I'm skeptical.  I hope I'm wrong.

The images coming out of the aftermath of the storm are incredible. The cleanup looks like an impossible task.  Where do you start?  They showed how things were down in the underground subways.  Yuck!  I can't imagine how long it will take to get it put back like it was before, if they can at all.  

Looks like unemployment in the area will fall to near zero for years to come, just by putting everyone to work hauling off debris.  For building material suppliers I'm sure they'll be producing stuff as fast as they can to replace what was destroyed, which will mean upward pressure on material prices nationwide.  Yes, we'll ALL probably feel it with every trip to Home Depot.

Wouldn't it be great to have things all going our way, smoothly, as planned, even if only for a few days?  What was it SNL's Roseanne Roseannadanna said?....It's always something!  *sigh*

S