Insurance coverage that protects losses caused to property because of floods is called flood insurance. If your area is prone to floods, buying flood insurance would be a wise decision. Floods cause a great deal of damage to millions of homes. Having a flood insurance means you are spared the damages that are caused by flooding.
You might not want to purchase flood insurance because of the expense you would incur, but it is better to pay for the insurance than to spend even for rebuilding your home if it is damaged by floods. Remember, homeowner’s insurance policy will not pay for the damages caused by floods to your home; this is a misconception that some people have.
What is excess flood insurance?
In excess flood insurance, you are covered for more than the National Flood Insurance Program (NFIP) benefits. This kind of insurance will provide coverage for rebuilding your home and also for replacing assets that were damaged due to the flood. Excess flood insurance can be purchased from an excess and surplus carrier or can also be purchased from certain flood insurance companies.
If the value of your real estate exceeds the amount provided by the National Flood Insurance Program, you will be safe if you get an excess flood insurance. If you have property located in a flood prone zone, you are eligible for excess flood insurance.
Other things you need to know
You can go for quality and low cost flood insurance coverage. A licensed insurance agent should be able to offer discounts in comparison to other coverage plans. If the flood insurance coverage is recognized and approved by a Federal Emergency Management Agency (FEMA), it will imply that you are receiving flood coverage similar to everyone else but for a lesser cost.
Flood insurance will cover your home for a wide range of flooding cases. The main reason for having flood insurance is when an area receives very heavy rainfall in a short period of time causing a flood and hampering your property. Other events that can cause flooding and call for flood insurance include damages to the home due to melting snow, a swimming pool leak, clogged storm drains, and other such calamities.
The cost of the flood insurance will depend on the coverage plan that you have selected. You need to do proper research for getting the coverage you require and at a low price. Arming yourself with flood insurance will save you from the aches and pains that could be caused by heavy losses incurred because of ravages of a flood. So be safe and not sorry. Get a flood insurance coverage as soon as possible.
Art Fennell Reports takes a cxloser look at flood insurance and how it can help you in a crisis or possibly give you a false sense of security.
Question by Crazeddoglady: Flood insurance?
Today the news (ABC) reported that some 90% of the midwest flood victims don’t have flood insurance. Assuming that they have mortgages (they look like they don’t own their homes outright – many too young) how is it that they don’t have flood insurance? How many times are we, the taxpayers, going to have to bail people out who don’t have the basic insurance coverage that they should have? Why do we allow people to continue to rebuild in these areas?
Best answer:
Answer by mom_of_1
First, you will not bail us out. We will bail ourselves out like we always do. Second, only people required to buy flood insurance buy flood insurance. It is very very costly. Third, lots of these people live miles away from the river and never dreamed the river would reach them. Finally, tell me one place in this world that doesn’t have natural disasters. Where do you want us to move to? California where there is earthquakes and fires all time. Down south where there is hurricanes all the time. North where there is snow storms all the time. There is no where on this planet where anyone can move to that doesn’t have natural disasters.
Anaise – You sure aren’t a very good insurance expert. Where can you buy flood insurance for $ 388/year? No where, most policies start at $ 1000 and thats just a starting price.
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Flood victims make perilous return as death toll rises
Mandy Greene waded chest-deep through part of the Rockhampton flood yesterday in a final attempt to reach her family home and find her insurance policy before the river rose too much.
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so move to another country if you don’t like it, i can’t wait for your house to be destroyed in some natural disaster with out any insurance, then you will have a completely different attitude, grow up
Hello. I’m a central Illinois flood victim. My town has never seen a flood as big as the one that hit my home, but we do have a mandatory flood insurance because we do live in a flood zone. The thing is, with rising gas prices, nobody really wants to pay extra money for something they don’t think will happen to them. Americans as a whole will see something on TV and think ‘too bad for them, but it’s not going to happen to us.’ That’s why they don’t have flood insurance. Another thing is that Flood insurance and Homeowners insurance are two seperate things.
Our flood insurance only covered the basic things that are “supposed’ to be in a basement. Washer, dryer, and furnace. It doesn’t cover anything beyond that. We had to petition our homeowners insurance to get enough money to replace things and rebuild. On top of that, our rates are going up because they decided my home’s risk is higher than it used to be. Pontiac has annual floods, and they’ve been getting worse and worse every year.
Yes, flood insurance does help a little, but not as much as the name causes you to think.
And what’s this about ‘bailing us out?’ I could only dream of having my country support me. It took us MONTHS to get FEMA support, and even that didn’t help.
The inspected: How many TV’s we own. How many telephones we own. How many outlets there are in the basement. How many light fixtures there are in the basement.
Three months later, we got a check for $ 99.99. a hundred bucks on top of thousands of dollars of repair? Thanks, but no thanks.
This is how it works when someone doesn’t buy a 388.00/yr flood policy: when a flood occurs and wipes out all your belongings, you suffer a loss, the government comes in an “bails” you out. Not really. The bail out is through a “government loan” that you pay back with interests. So you aren’t off the hook. FYI.
One can always try to find higher ground than build on a flood plain.
The ways they don’t have flood insurance:
They don’t have mortgages.
Their house slipped through the cracks and mortgage co didn’t see they were in flood plain.
The owners paid off surveyors to say they weren’t in the flood plain.
The most likely reason is: Flood insurance is only required for 100 yr flood plain and this flood is a much greater magnitude. Some people in this flood actually weren’t in the flood plain. This is one of the greatest floods on record. A flood of this size is mapped or planned for because it isn’t cost effective.
All that said-I AGREE. The tax payers will pay dearly for people without insurance and for public infrastructure that was damaged.
This is not like New Orleans where the government should buy the 9th ward and that area and let NO ONE build ANYTHING there.
You have to blame the flood but also the people who live in the flood plain.
Is basically useless expense.Even if you have it,it only pays under some conditions not all,and this flood has never happened before to this extent.Maybe you should read your policy’s if you have any.I once owned a riding mower covered under a homeowners policy and the insurance I had to carry on it separately until paid off and in a natural disaster it would only pay if it was in the back of my truck when the disaster struck ON TWO SEPARATE policies!What a waste of money and absolutely no coverage.And yes when the tornado did strike it was sitting in my yard,not the truck.Insurance should be outlawed.It is the biggest rip off.You should be thanking your lucky stars you are not one of the victims.
Invaluable…,
I know I’m getting older when I start reading and writing reviews about insurance books.
I’m not a big fan of the “dummies” books for a few reasons: (1) First my ego…I have to admit I don’t want a book on my shelf that is a dummy guide for anything, and (2) I don’t want to buy another reference book that is going to sit on my shelf and collect dust.
I purchased this book b/c I had big questions about car insurance, life insurance, and umbrella policies. No concerns about house insurance, which seemed to be the biggest complaint about the book.
Quite frankly, it answered all of my questions. Before reading this book, I didn’t even know the difference between collision, liability, and comprehensive insurance; and I had no clue how much insurance I should carry for that “break glass in case of emergency” type accident. And like all of the dummy books, the text is informative while remaining engaging , and actually entertaining-even though the subject is insurance.
I actually feel empowered after reading this book. It led me to purchase an inexpensive umbrella policy (if you don’ t have one, you need it) that will certainly make me sleep better at night.
This is one of those books that after you read/reference it, you’ll wonder how you ever operated in the past without the knowledge it contains.
Don’t put too much trust in earthly treasures, but you should certainly protect what you do have!
Recommended.
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|Essential reading,
This book is worth its weight in gold. I originally picked it up while doing research on life insurance options. But after reading the first chapter on auto insurance, we called our agent, raised our libability limits and deductibles, got rid of unnecessary coverage and ended up saving ourselves $250 a year! The author, who has worked in the insurance industry for years, makes things plain and simple and illustrates his points with easy-to-understand charts. Now I feel like we actually have a clue about what we’re buying, and I feel much more secure knowing we’ll likely be well covered in the event of a catastrophe. This should be on every homeowner’s bookshelf.
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|Insurance for Dummies,
I have been in the insurance business for 31 years. I found this book to be every helpful. Jack has taken a complex subucet ( insurance ) and explains it in simple terms. I have shared this book with other professionals and they are as delighted as I am. I now use some those examples in my own practice to explain things to my clients. It is worth the time to reading. .
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