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Re: not correct
Posted by steve (more from steve) on Thu, 18 Sep 2008 13:43:57
In Reply to: Re: not correct, Craig, Thu, 18 Sep 2008 13:12:56
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Some interesting things in there such as ~29% of policies are still subsidized. Keep in mind that means premiums are subsidized which is only a problem if there is a loss. Sounds like they should deal with the repetitive losses and get more people to buy. Then they may be able to lower rates and get even more to buy.
"For the life of the program, the program has shown a net loss of $531 million." Ignoring the issue of accounting irregularities, that doesn't seem that bad over 40 years.
"According to FEMA, about 38 percent of all claims historically... represent repetitive losses"
"...nearly 1 out of every 10 repetitive loss homes has had cumulative flood loss claims that exceeded the value of the house. Furthermore, over half of all nationwide repetitive loss property insurance payments had been made in Louisiana and Texas. About 15 states accounted for 90 percent of the total payments made for repetitive loss properties."
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