By: KelLovesOBX
6/25/2024 12:19 PM
"The U.S. House bill, one of whose two primary sponsors is North Carolina Republican Rep. Greg Murphy and who represents the Outer Banks, would allow homeowners to receive payouts from the National Flood Insurance Program (NFIP) to demolish or relocate condemned structures before they fall into the ocean."
This is good news for at risk homes.
More here:
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By: KDHBreeze
6/25/2024 12:35 PM
Probably not.
Publicity stunt.
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By: xobx
6/25/2024 1:07 PM
Makes sense and a good starting point. Better than leaving the situation as it is.
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By: Tim-OBX
6/25/2024 1:17 PM
"The U.S. House bill, one of whose two primary sponsors is North Carolina Republican Rep. Greg Murphy and who represents the Outer Banks, would allow homeowners to receive payouts from the National Flood Insurance Program (NFIP) to demolish or relocate condemned structures before they fall into the ocean."This is good news for at risk homes.
More here:
Those owners are probably waiting to let mother nature take them out because then they might get a little money from flood insurance (it's very little too) so with this program the owners don't have to wait and NPS doesn't have to pay to clean it up.
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By: GrandpaD
6/25/2024 9:39 PM
I guess this Rodanthe owner could have used the $$$.
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By: Brian Wilson
6/28/2024 11:06 AM
Isn't a better solution for some level of government to remove at risk homes and charge the cost back to to the owner rather than socializing the cost?
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By: Tim-OBX
6/28/2024 11:50 AM
Isn't a better solution for some level of government to remove at risk homes and charge the cost back to to the owner rather than socializing the cost?
The value of the house goes to about zero when it is condemned so the owner looses all interest in paying more, so they just let it fall into the ocean. Then they file for flood insurance.
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By: oldmember
6/28/2024 12:25 PM
"The U.S. House bill, one of whose two primary sponsors is North Carolina Republican Rep. Greg Murphy and who represents the Outer Banks, would allow homeowners to receive payouts from the National Flood Insurance Program (NFIP) to demolish or relocate condemned structures before they fall into the ocean."This is good news for at risk homes.
More here:
Prior to 1999, there was a similar blil that was called the 'Upton-Jones Act'.
This bill would take effect after the house was condemned, it would be removed by a section of the bill that provide demolition cost.
Similar to flood insurance it would pay the owner the current worth of the HOUSE minus a depreciation rate at 1 -2 / year based on the age of the house.
It only covered the property, not the sand
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By: mdabul
6/28/2024 12:47 PM
Payout above the current insurance level? If so, what's special about condemned oceanfront houses that allows them to get extra "insurance" money because they didn't think ahead? How about the rest of the country... lot's homes condemned this week due to flooding... why not them?
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By: Tim-OBX
6/28/2024 2:02 PM
Payout above the current insurance level? If so, what's special about condemned oceanfront houses that allows them to get extra "insurance" money because they didn't think ahead? How about the rest of the country... lot's homes condemned this week due to flooding... why not them?
You would not believe how little the owner gets if they use the flood insurance. As mentioned above, the flood policy does not use current value, they take the value and depreciate it over the years it has been there. A 30 year old house would get almost nothing. Some houses lost in 2003 in Kitty Hawk got less than $50k and some about half that.
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By: Greg MD
6/28/2024 2:24 PM
Whatever the insurance amount, it would be best to forfeit it to whomever is stuck with the cleanup of the mess.
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By: OceanBlue
6/28/2024 2:50 PM
Lest we forget, IIRC, the owners cost of "clean up" is currently limited to the foot print of the property.
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By: johnbt
6/28/2024 3:04 PM
"Isn't a better solution for some level of government to remove at risk homes and charge the cost back to to the owner rather than socializing the cost?"
isn't the government paying to remove the house socializing the cost? How many owners can afford to pay back the government and/or will pay back the government?
If the owner paid for flood insurance why not have the insurance money remove the house before it falls and washes up and down the beach? It appears to be a more direct method of preventing litter by using funds the homeowner paid for with premiums.
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By: mdabul
6/28/2024 6:10 PM
Payout above the current insurance level? If so, what's special about condemned oceanfront houses that allows them to get extra "insurance" money because they didn't think ahead? How about the rest of the country... lot's homes condemned this week due to flooding... why not them?You would not believe how little the owner gets if they use the flood insurance. As mentioned above, the flood policy does not use current value, they take the value and depreciate it over the years it has been there. A 30 year old house would get almost nothing. Some houses lost in 2003 in Kitty Hawk got less than $50k and some about half that.
I get that... but anyone who buys oceanfront on the sand spit either accepted the risk... or missed an episode. Happens everywhere all the time in hundreds of other scenarios. Probably the same people who borrowed 100's K for college and want it paid for.... but I digress.
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By: johnbt
6/29/2024 5:45 AM
" but I digress"
Yes, it appears you have missed the point of the bill.
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By: OceanBlue
6/29/2024 9:03 AM
but anyone who buys oceanfront on the sand spit either accepted the risk... or missed an episode.
True. 100% True. But many of these buyers (especially covid buyers) were clueless (NOT a defense) about living on (in, sometimes) the water...and, they were shown the property (and the BS top line rental revenue XLS) in August (summer beach) at dead low tide. So, yeah, not just an episode was missed.
So, right or wrong,,,they now own a rental "machine" (in their mind) and can't get their head around the fact it's going away and the county won't nourish the beach.
EDIT: my $.02 is that the introduction of the bill is a step forward and the furthering of this conversation.
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By: jfalba
6/29/2024 9:23 AM
So you can buy a million dollar plus home OF and it is worthless later and you basically lose it all? I know big city scared of covid were getting out and buying sight unseen. Like off of Zillow. I sort of wish I could afford to buy a house sight unseen, lol I did meet a nurse that told me they bought a small farm sight unseen except for photos when they moved north from the south. She was done with the southern heat and storms.
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By: OceanBlue
6/29/2024 9:32 AM
So you can buy a million dollar plus home OF and it is worthless later and you basically lose it all? I know big city scared of covid were getting out and buying sight unseen. Like off of Zillow. I sort of wish I could afford to buy a house sight unseen, lol I did meet a nurse that told me they bought a small farm sight unseen except for photos when they moved north from the south. She was done with the southern heat and storms.
Well, yes, but same thing can happen w the "right" hurricane landfall. Save flood insurance (as further described in this thread) if you have it.
Lot's of second guessing on covid buys...we know a few folks that "escaped" to FL pretty much sight unseen...they had no idea what heat/humidity/bugs/critters were. And, occasionally, just weird "florida man" behavior all around you.
Local knowledge from RE agents that are truthful (as Tim on here strikes me to be) is the best advice. And, go see the place, your neighbors all that kinda stuff. Just do your homework 
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By: Moonrise
6/29/2024 12:11 PM
Pre-collapse measures such as this are a step in the right direction. I’m glad that this discussion has started. No plan will be perfect but this is great place to start.
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By: KDHBreeze
6/30/2024 10:10 AM
"The U.S. House bill, one of whose two primary sponsors is North Carolina Republican Rep. Greg Murphy and who represents the Outer Banks, would allow homeowners to receive payouts from the National Flood Insurance Program (NFIP) to demolish or relocate condemned structures before they fall into the ocean."This is good news for at risk homes.
More here:
Prior to 1999, there was a similar blil that was called the 'Upton-Jones Act'.
This bill would take effect after the house was condemned, it would be removed by a section of the bill that provide demolition cost.
Similar to flood insurance it would pay the owner the current worth of the HOUSE minus a depreciation rate at 1 -2 / year based on the age of the house.
It only covered the property, not the sand
The Upton-Jones Amendment funded up to 40% of the policy to move houses and up to 110% to demolish them. The maximum payout was $185,000 for the structure and $60,000 for its contents. Most people opted for demo, and the program was unsustainable after about 5 years and repealed at the 8 year mark.
It also was a program very heavily utilized by one state in particular.
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