Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Kurt F.

Kurt F. has started 11 posts and replied 237 times.

Post: Flood insurance $7000, on a $70,000 house?? Need advice please

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

Joel -- how are ya? ....do I REALLY expect a repeal? I don't. This is a fairly wild twist for many of us, and I'm not smart enough to know yet what will shake out in the end. Values -- at least for the moment -- are shot by this act. I can't sell right now without a massive loss, so I'll sit tight and watch what happens.

One thing -- you mention private fllood insurance. I can't find that this actually exists as an option for houses affected by Biggert Waters. Hence the big controversy. Several on this forum have casually thrown this idea out there, but I've yet to see phone numbers or websites, etc. That said, I would be quite happy to stand corrected.

On a more cynical note, it would seem that Biggert Waters -- as a coffers-filling scheme -- NEEDS federally-set flood rates in order to benefit / "profit". The concept of cheaper private insurance kind of wrecks their plan.

Post: Flood Insurance rates rise January 1, 2014 under Federal law

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69
Originally posted by David Krulac:
@Kurt F.
"The premiums will continue to rise by Biggert-Waters every year for the next 4 or 5 years. And if they still can't stop the red ink then, what do you think will happen following the next 4 or 5 years. Premiums go down?
If you don't have a mortgage, then you are NOT required to have flood insurance but run the risk of a total loss. Neither choice is any good.

My response stands sell if you can and be cautious about buying any property in the flood zone, and you can do a flood cert and you can elevate the property."

------------------------------------------------------------------

Regarding your posts, you're too late...

In the same way that I and most other flood plain dwellers are already quite aware whether or not we need flood insurance, we also already recognize the resulting context and longer potential term fallout, including possible continual rate increases, precipitous drop in value, etc. Similarly, since new buyers are hit with the increases in one enormous quote all at once, and not incrementally as with current owners, new buyers are already becoming immediately aware which houses NOT to buy. (The elev cert is typically going to bring you worse news, not better, by the way.) Anyway, I've personally witnessed several attempted sales fall through as soon as the huge flood insurance quotes came in.

So "sell if you can" and "cautious buying" aren't typically realistic.

Elevating the property -- this is technicaly feasible, but rarely economically so.

Post: Flood Insurance rates rise January 1, 2014 under Federal law

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

Thanks for posting this, David K. --- there are a few other threads on Biggert Waters as well. The whole issue took thousands of people by surprise, including me as my personal residence is on a flood plain. I have no mortgage on this house, but am still affected adversely affected.

As far as getting out before rates increase as you've suggested -- unfortunately, that doesn't seem to be a viable option. New buyers get hit hard enough already that I've watched several house deals in my neighborhood fall through as soon as the insurance quotes came through.

Has me very concerned. I also have one duplex, and I had been planning to buy another property at some point. This is a twist I had not expected. I'm not loving the idea of my current home's value dropping dramatically.

All I can think of is that my current home could eventually become a rental, and I move on to buy an additional house to live in...???

Any thoughts would be really appreciated.

Post: Flood insurance $7000, on a $70,000 house?? Need advice please

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

Unfortunately, James -- as John Holdman mentioned -- people under Biggert Waters are stuck, at least for now. My personal residence is affected by Bigger Waters -- it's paid off, but the value is obviously affected. No buyers when the mandatory flood insurance is 10% of market value. I'll be waiting and hoping for a repeal.

So if Donald thinks he can produce a solution for Brian H., me, and the thousands affected, we are all ears.

Post: Flood insurance $7000, on a $70,000 house?? Need advice please

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

Donald Stevens -- I'm not sure what you're responding to after your last post. Maybe to re-focus on Brian H's original post....and the fallout of Biggert Waters. I also live in an area with many neighbors who have become directly affected by the same insurance rate increases Brian H is dealing with. I'm sure that Brian and my neighbors would appreciate your sharing of your specific solutions -- websites, phone numbers, etc.

Post: Flood insurance $7000, on a $70,000 house?? Need advice please

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

@ Donald Stevens -- not sure what you are saying you did to get rates from 3000 to 1500. The rates are set by the National Flood Insurance Program. They are all the same -- there is no shopping or checking alternatives.

Post: Flood insurance costs soaring

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

@ Collen F.... the thread is about Biggert-Waters, so the issue is not about the typical insurance increases that have historically occurred. The issue is unprecedented and astronomical increases in flood coverage -- particularly in the case of new buyers. The increases don't set up a maybe buy, maybe don't buy, scenario, as you suggest. The increases are automatically killing deals, as I've pointed out in my examples from my own neighborhood.

Uncharted territory.

Post: Flood insurance costs soaring

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

The effect of the Biggert-Waters Act is is likely to be a much larger issue than some posts here seem to suggest.

The map updates are largely incomplete, and so purchases in flood zones begin with the buyer purchasing an elevation survey.

I live near a creek which has been designated flood zone for many years. Federal coverage ran about 1200/year. A buyer for a similar house two down from my primary paid for an elevation survey -- about 500 dollars -- and then got an insurance quote of 10,600 dollars / year.

Post: Beach houses in Quincy, MA: Flood / Hurricane Insurance Costs

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

Thanks, Ann -- I really appreciate the input.

Post: Beach houses in Quincy, MA: Flood / Hurricane Insurance Costs

Kurt F.Posted
  • Investor
  • Rocktown, IL
  • Posts 238
  • Votes 69

Greetings --
My sister lives on the east coast and is looking to buy her first home -- on the beach in Quincy, MA. I know nothing about property there, as I live in Iowa. She is looking in the 450,000 dollar range -- given that, can anyone give me a heads up on the insurance that will be required on the beach in that type of location? Standard homeowners, of course, but how about flood and hurricane coverage? Any input on the costs involved for flood hurricane insurance?
Thanks in advance.