| A bill has been introduced in Congress that would permit some victims of hurricanes Katrina and Rita who didn't have a flood insurance policy at the time the storms struck to retroactively purchase such insurance. Yes, you are reading this correctly! Rep. Gene Taylor (D-Mississippi) introduced H.R. 3922 (Flood Insurance Buy-In Act) that would allow affected home and business owners whose properties didn't lie in federally designated flood hazard zones to purchase coverage from the National Flood Insurance Program by making the equivalent of 10 years of premium payments, plus a five-percent late penalty. Premium payments would be deducted from the property owner's claim settlement. So let me figure this out. My $250,000 flood-damaged home can be insured for 10 year's premium plus 5% which looks like a cost to me of less than $10,000 and then I'll receive a flood claim check for $240,000. I'LL TAKE IT—where do I sign!?! If I'm not in a federally designated flood hazard zone, my premium is "preferred" or very low so I might even get by for less!! WOW—Can I do this with my car insurance and life insurance?? Lets see now—I want a million dollars of life protection for NO premium unless I die. Then my estate can pay just ten annual payments of $500 for $5000 plus 5% late penalty or $5250 and my estate receives a MILLION dollars (less the $5250 premium of course—that would only be fair!!). I'll TAKE IT! This is for real, folks—check it out—it’s H.R. 3922. |
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