Is it true that inland insurance policies subsidize homeowners like Lott?

[Digit]

In their home state, is it true that all homeowners subsidize the wealthy who can afford to have homes on the coast, AND who managed to get a huge tax break?

[Sgent]

1. Not sure what you mean

The maximum payment for NFIP flood insurance is 250,000 -- not exactly a mansion.

In addition, the rates are set on value -- someone with a 100k policy pays approximately half of someone with a 200k policy.

3rd, although there is an implicit gaurentee by the feds. The NFIP has collected 186% more premium than paid in claims since its founding. Most insurance companies shoot for 100% and try to make the profit on the portfolio returns.

[sandnsea]

2. Everyone's insurance will go up

Hell my car insurance went up because Safeco insured Enron or Worldcom, one or the other. We pay for these losses with our tax dollars in flood insurance and our premiums in homeowners insurance.

[izzie]

3. I swear that my company said small cars should pay more

Can not find the information on that any more but seems my car is not as safe as a SUV. If they hit me I am done for. Homes on the coast are always fighting with the companies in Maine. People keep having to replace the summer homes built on dunes.That cost me on my ins. when I do not live on the ocean. Ins. Co make money.

[applegrove]

4. I think I remember on day one of Katrina - when the focus was on

the economy - the insurance industry point out that everybody's hurricane insurance goes up because the government allows them to up the rates.

I don't know what happens when you have two huge hurricanes one after the other.

That would be a blow to the rest of the country for sure if everyone had to pay. The insurance industry does work that way. Though some regulations.. at least as of August there were some regulations...perhaps not anymore... you never know with these guys.