Well, your premise is somewhat faulty. Florida and Texas coastal properties do NOT include wind damage (aka, hurricane) in the homeowners policies. Inland Texas policies do include wind, with a hefty deductible (5% - which for a $150,000 house, means $7500 deductible).
I have a POC house in Galveston, cost to rebuild is probably around $65,000. The homeowners (insured at $90,000) is $1300 a year, excluding flood & wind. The wind is $1900 a year, I don't know how much the flood is - we're not carrying flood insurance on it. So I don't know how much homeowners is in California, but that's pretty darned expensive, to me, for 700 square feet.
Regarding all homeowners bearing the burden, you're absolutely right. Keep in mind, however, that there are VERY few companies still writing coastal properties. If you want to be sure you aren't subsidizing these properties, put your insurance with a regional carrier, rather than a national carrier. They tend to have better rates, anyway.
Finally, FLOOD insurance is a FEMA program. That means every blessed taxpayer in the US subsidizes the flood damaged houses. I have a BIG problem with that; because I just don't think it's fair to expect the rest of the nation to pick up the tab, because you (and I!!) want a beachfront property. I think if someone wants the beachfront, then storm is just a hazard of that kind of property, and the owner needs to think about that before buying, not expect the rest of the nation to "bail them out" after the fact. JMHO.
|
Linear Mode
