Some insurance companies have been red-lining areas, such as my neighborhood and issuing the full value of all policies in that area, rather than sending an adjuster. Other companies have been sending adjusters and settling claims based on the actual losses incurred.
The problem with this is that the money comes from the same place. The National Flood Insurance Program. This is an unfair practice that really has been allowing many people to hit the jackpot with little damage while other people are having to quibble over every cent they need to receive their coverage.
These companies using the redline practice should have to collect money back from their insurers or pay the money back to the flood insurance program themselves.
- Jay Dufour