Note that from day one an exception to actuarial risk was made

Reader comment on: USA Today on Flood Insurance

Submitted by Lyle (United States), Nov 14, 2012 11:41

Properties existing at the time of the adoption of the original law were given a much lower rate than would be justified by the risk. However there is a sleeper effect of the law that will soon result in a lot of noise being made. If a property is more than 51% damaged it has to be rebuit to new buildihg codes similar to what happened in New Orleans. This means that the joists of the lowest floors need to be 1 foot above the 100 year flood level. The lower level must have breakaway walls, and may be basically a garage and the like. This means that houses on the Jersey shore will be on stilts like houses along the gulf are in general. Note that part of the issue is that a lot of houses in Jersey were over 50 years old. I would add a new clause that if the house is over 50% destroyed twice in 20 years it is torn down and the land is to be made into open space (you get paid for the damage, but may not rebuild at that site)

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