COMMENT OF THE DAY: WHAT ENDING FEDERAL FLOOD INSURANCE SUBSIDIES COULD DO FOR GALVESTON “Biggert-Watters would have destroyed the home market in many of Galveston’s West End beach communities. My wife and I were looking at homes just as the revised rate plan went into effect in late 2013. The quote I received for JUST FLOOD INSURANCE on a $250K house was $40,000 per year. As long as the government allows federally backed mortgages in these areas, they will have to subsidize the insurance rates. It really is that simple. If the rates aren’t subsidized, the market will collapse for these homes. It will be a vicious circle. Those that need a mortgage to afford a home won’t be able to afford insurance. Those who own a home with a mortgage won’t be able to afford insurance. Homes will only be marketable to cash buyers who can self-insure. How much would you pay for a home that you could only market via an owner-financed or cash transaction? A property that would essentially be unmarketable to buyers via traditional mortgage.” [Mike Honcho, commenting on Comment of the Day: Why You Can Get Flood Insurance in Houston] Illustration: Lulu