Tag: flood insurance

bookmark_borderReal Estate and the Rising Sea Level

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by Daniel Brouse

“Living near the water is incredibly appealing for people around the country, but it also comes with additional considerations for buyers and homeowners,” Zillow chief economist Svenja Gudell wrote in a new report. “Homes in low-lying areas are also more susceptible to storm flooding and these risks could be realized on a much shorter timeline as we have seen time and time again.”

Climate change is causing the sea level to rise. The effects are already being felt in places like the Jersey Shore. Atlantic City, N.J. ranked third in the top ten U.S. areas that experience nuisance flooding with a 682% surge since 1957.

“As relative sea level increases, it no longer takes a strong storm or a hurricane to cause flooding”said William Sweet, Ph.D., oceanographer at NOAA’s Center for Operational Oceanographic Products and Services (CO-OPS) and the report’s lead author. “Flooding now occurs with high tides in many locations due to climate-related sea level rise, land subsidence and the loss of natural barriers. The effects of rising sea levels along most of the continental U.S. coastline are only going to become more noticeable and much more severe in the coming decades, probably more so than any other climate-change related factor.”

“We’ve seen the enormous impact flooding can have on a city and its residents,” said Gudell. “It’s harder for us to think about it on a long-term timeline, but the real risks that come with rising sea levels should not be ignored until it’s too late to address them.”

The Zillow report found:

  • Coastal homes are threatened by the prospect of rising sea levels
  • More than $900 billion worth of U.S. residential real estate could be lost by a 6-foot rise in sea levels
  • The rise in water levels projected by 2100 could destroy 2 million homes

A CNBC analysis of the report said, “Of the nation’s largest cities, Miami, New York, Boston, Tampa and Fort Myers, Florida, have the highest volume of homes at risk of flooding. Los Angeles, Charleston, South Carolina, Houston and New Orleans are also in the top 20 markets at risk.”

Flood insurance is usually needed to obtain a mortgage for a property located in a flood zone. Flood insurance is the only insurance offered by the federal government that can be obtained by anybody. The National Flood Insurance Program (NFIP) is made available by the Federal Emergency Management Agency (FEMA).

The NFIP offers coverage for: 1) Building Property, up to $250,000, and 2) Personal Property (Contents), up to $100,000. The coverage is cumulative which means NFIP will pay out a maximum of $250,000 for the structure. If you make a claim for $100,000 and then sell the property, the next owner can only get insurance for up to $150,000.

The Zillow study found:

  • One-third (32 percent) of underwater homes would be valued in the bottom third nationally, meaning $123 billion in losses.
  • Two in five (39 percent) underwater homes would be valued in the top third nationally, translating to $597 billion in lost high-end real estate.
  • In rural and suburban areas, homes in the top value tier may face particular risk, while in urban areas homes in the bottom value tier are more likely to be affected.

MORE INFORMATION:
Top 5 Risks
How Do We Handle Flood Risk?
Senegal Forecasts Climate Change Changes
Biloxi-Chitimacha-Choctaw Indians Climate Change Refugees
Atlantic City Going Under
Biggert Waters Flood Insurance Reform Act of 2012
Flood Insurance Reform 2011
About Flood Insurance
Who Pays For Flood Losses?
Floodplain Maps Force Towns Into Tricky Waters
Head of the Federal Flood Insurance Program Resigns
Sacramento And FEMA Fight On Flood Insurance
Global Warming

bookmark_borderFlood Insurance and Rising Sea Levels

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by Daniel Brouse

Q: Who pays for flood insurance?
A: The United States government, FEMA, covers losses for people that pay flood insurance premiums.

Q: Does your homeowners insurance policy cover you in the event of flooding?
A: No.

Flood insurance coverage is very limited. For instance, basements and belonging in a basement are not covered. Life-time coverage is also limited. If a property has a pay-out in the past, it will be applied to the maximum coverage of the life-time coverage.

As climate change causes extreme weather events and the sea level to rise, houses that are prone to flooding will find it harder and harder to get flood insurance. Without flood insurance, properties located in a flood plain become almost impossible to sell.

For years, the casinos in Atlantic City, NJ have had a plan to float the casinos and move them westward as the sea level rises. Shipping ports face a similar problem, but how can you move a port inland? Coastal areas will need to start a constant and progressive movement to higher ground.

Freddie Mac mortgage says, “Insurance is an essential component of real estate transactions, and flood insurance currently makes it possible to obtain loans for homes in areas of identified flood risk. However, some of the varied impacts of climate change—rising sea levels, changing rainfall and flooding patterns, increasing temperatures—may not be insurable. As a result, some important features of housing finance may have to change. The potential impact of these systemic changes on the financial system is difficult to visualize today.” (More from this article.)

Flood Insurance Index
Global Warming Index

bookmark_borderClimate Change Immigrants and Refugees

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By Daniel Brouse

EARTH — As human induced climate change is realized, mammals have started showing patterns of migration. Some conditions are driving animals south due to the loss of their habitat (mostly animals living on ice, such as, seals and polar bears.) Some conditions are allowing animals to migrate further north (like humpback whales.) Some conditions are forcing animals to seek higher ground, as well as, escape salt water intrusion. (eg humans that live on islands)

* NOAA recently concluded that mammals are migrating due to global warming. “Humpback and fin whales are now able to go farther north in most winters, competing with beluga whales for resources,” a scientist for the National Oceanic and Atmospheric Administration said.

* The government of the Marshall Islands has requested climate change refugee status from the United States for former Bikini island residents. “The people of Bikini came back to us and asked us to take this proposal to the US, to request the resettlement trust fund be used to settle people in the US not just the Marshall Islands,” said Tony de Brum, Foreign Minister of the Marshall Islands. “We have not seen the final text of the legislation but the request that went in was on the basis of Kili being uninhabitable because of climate change.”

* In Paris almost 200 countries have ratified a new agreement in an attempt to help mitigate climate change. Included in the deal is $100bn fund to help developing and island countries adapt to global warming.

* Long ago in the United States, FEMA started a forced plan of relocation for homes located in areas prone to flooding.

Chances are large that if you are a mammal you will become a climate change refugee.

More on the Human Induced Climate Change Experiment

bookmark_borderWhen Storms Collide

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October 29, 2012 — The worst case scenario is about to take place for the New Jersey Shore. Hurricane Sandy is expected make landfall during high tide. Part of the Atlantic City boardwalk has already been washed away.

Hurricane Sandy, October 29, 2012
Hurricane Sandy, October 29, 2012

October 26, 2012 — Though hurricane Sandy has been downgraded, there is a chance the Northeastern United States could be walloped. Another storm approaching from the Midwest might converge with Sandy. One computer model estimates $5 billion dollars in damage should this occur.

Hurricane Sandy Satellite Image
Hurricane Sandy Satellite Image

Hudson to Baltimore Canyon Southern Florida NE Gulf N of 25N E of 87W Gulf from 22N to 25N E of 87W including Straits of Florida NW Gulf including Stetson Bank N Central Gulf including Flower Garden Banks Marine Sanctuary W Central Gulf from 22N to 26N W of 94W Central Gulf from 22N to 26N between 87W and 94W Atlantic from 27N to 31N W of 77W Atlantic from 27N to 31N between 70W and 77W Atlantic from 27N to 31N between 65W and 70W Bahamas N of 22N including the Cay Sal Bank Atlantic from 22N to 27N E of Bahamas to 70W Tropical N Atlantic from 15N to 19N between 55W and 60W Caribbean N of 18N between 76W and 85W including the Cayman Basin Caribbean N of 18N between 76W and 85W including the Cayman Basin Caribbean approaches to the Windward Passage Atlantic S of 22N W of 70W including approaches to the Windward Passage Cape Fear to 31 N Hatteras Canyon to Cape Fear Baltimore Canyon to Hatteras Canyon Baltimore Canyon to the Hague Line South of New England Georges Bank Gulf of Maine Newport/Morehead City, NC Brownsville, TX Corpus Christi, TX Houston/Galveston, TX New Orleans, LA Lake Charles, LA Mobile, AL Tallahassee, FL Tampa, FL Miami, FL Key West, FL Florida Keys Miami, FL Melbourne, FL Jacksonville, FL Charleston, SC Wilmington, NC Baltimore/Washington, DC Wakefield, VA Philadelphia/Mt. Holly, PA/NJ New York, NY Boston, MA Gray/Portland, ME Intra Coastal Waters from Schoodic Point ME to Stonington ME Coastal Waters from Schoodic Point ME to Stonington ME out 25 NM Waters from Eastport ME to Stonington ME from 25 to 40 NM Waters from Eastport ME to Stonington ME from 25 to 40 NM Northeast Minnesota and Northern Wisconsin Northern Michigan Northern Michigan Northern Michigan East Central Wisconsin - Green Bay East Central Wisconsin - Green Bay Southern and Southeastern Wisconsin Northeastern Illinois and Northwestern Indiana - Chicago Northern Indiana and Northwestern Ohio Southwestern Michigan Northeast Michigan - Gaylord Northeast Michigan - Gaylord Northeast Michigan - Gaylord Southeastern Michigan - Detroit Southeastern Michigan - Detroit Southeastern Michigan - Detroit Northern Ohio Western New York - Buffalo Western New York - Buffalo Northern Michigan Point Conception To Guadalupe Island Point Arena to Point Conception Point St. George to Point Arena Cape Lookout to Point St. George Cape Flattery to Cape Lookout Los Angeles, CA San Diego, CA San Francisco Bay Area/Monterey, CA Eureka, CA Medford, OR Portland, OR Seattle, WA Los Angeles Area Los Angeles Area Los Angeles Area Los Angeles Area Los Angeles Area Los Angeles Area South Central California San Francisco Area Western Nevada North Central California Northwest California Coast Southwest Oregon and Northern California Northeast Oregon and Southeast Washington Northwest Oregon Northwest Washington Eastern Washington and Northern Idaho Southern Nevada, Southeastern California and Northwestern Arizona - Las Vegas Southwestern California - San Diego Central Arizona and California Deserts Southeast Arizona Northern Arizona Utah Northern and Northeastern Nevada Southwestern Idaho and Eastern Oregon Southeastern Idaho Western Montana and Central Idaho Central Montana - Great Falls Northeastern Montana Southeastern Montana Western Wyoming Southeastern Wyoming and Western Nebraska Northeastern Colorado Western Colorado and Eastern Utah Southeastern Colorado Northern and Central New Mexico Southern New Mexico and extreme Western Texas - El Paso Texas and Oklahoma Lubbock and South Plains Texas Western Texas and Southeastern New Mexico Western South Dakota and Northeastern Wyoming Northwestern Kansas and East Central Colorado - Goodland Central Nebraska - North Platte North Central Kansas and South Central Nebraska Southeastern South Dakota, Southwestern Minnesota, and Northwestern Iowa Northern and Northeastern South Dakota Western North Dakota Eastern Nebraska and Southwestern Iowa - Omaha Valley Northeastern Kansas Southeastern Kansas Southwestern Kansas - Dodge City Central Oklahoma Eastern Oklahoma and Northwestern Arkansas Dallas and Fort Worth Central Texas - San Angelo Austin and San Antonio Texas Corpus Christi, Victoria, and Laredo Texas Southern Texas Texas - Houston/Galveston Southeast Texas and Southwest Louisiana Northern Louisiana and Eastern Texas - Shreveport Arkansas Southwestern Missouri Northwestern Missouri Central Iowa Southern Minnesota Northeastern North Dakota and Northwestern Minnesota Northeast Minnesota and Northern Wisconsin Southwestern Wisconsin, Southeastern Minnesota, and Northeast Iowa Eastern Iowa and Northwestern Illinois - Quad Cities Eastern Missouri - West Central Illinois Western Tennessee, Eastern Arkansas and Northern Mississippi - Memphis Central Mississippi Southeastern Louisiana Middle Tennessee Northern Alabama Central Alabama Mobile - Pensacola West Central Florida East Central Florida Panhandle of Florida and Southwestern Georgia Northeast Florida and Southeast Georgia Northern and Central Georgia Low Country of South Carolina and Georgia Northeastern South Carolina and Southeastern North Carolina - Wilmington Central South Carolina and CSRA Western North Carolina and Northwest South Carolina Eastern Tennessee Eastern Kentucky Central Kentucky Southern Illinois and Indiana, Southeastern Missouri and Western Kentucky Central and East Central Illinois Central Indiana Northeastern Illinois and Northwestern Indiana - Chicago Southern and Southeastern Wisconsin East Central Wisconsin - Green Bay Northern Michigan Northeast Michigan - Gaylord Northeast Michigan - Gaylord Southeastern Michigan - Detroit Southwestern Michigan Northern Indiana and Northwestern Ohio Southwestern Ohio Northern Kentucky West Virginia Western Virginia, Southeast West Virginia, and Northwest North Carolina Central North Carolina - Raleigh Eastern North Carolina Eastern Virginia, Southern Maryland and Northeast North Carolina Washington D.C., Central Maryland, Northern Virginia, Eastern West Virginia Western Pennsylvania, East Central Ohio and Extreme Western Maryland Northern Ohio Central Pennsylvania New Jersey, Delaware, and Southeastern Pennsylvania New York City and Surrounding Areas South Central New York and Northeastern Pennsylvania Western New York - Buffalo Eastern New York and Western New England Areas Boston and Surrounding Areas Northern Vermont and New York Southern Maine and New Hampshire Northern Maine Juneau, AK Fairbanks, AK Anchorage, AK Western US Arctic Offshore Eastern US Arctic Offshore Bering Sea offshore 171 degrees West to 180 degrees and north of 56 degrees North Bering Sea offshore 171 degrees West to 180 degrees and south of 56 degrees North Pribilof Islands (St. Paul and St. George) Bering Sea offshore east of 171 degrees West Gulf of Alaska offshore north of 57 degrees North and west of 144 degrees West Gulf of Alaska offshore south of 57 degrees North north of 55 degrees North and west of 144 degrees West Gulf of Alaska north of 55 degrees North and east of 144 degrees West Juneau, AK Honolulu, HI Hawaiian Offshore Waters Hawaiian Offshore Waters