Flood insurance: Are you sure your home is covered?
Posted
Apr 23 2008, 09:35 AM
by
Karen Datko
Rating:
This post comes from partner blog The Dough Roller.
I've been talking with my insurance agent over the past few weeks about flood insurance. It may not be as exciting as Dr. Phil's marital debacle, but then again, Dr. Phil is unlikely to destroy my home.
I found a great government resource about flood insurance that I'll share with you. But first, here are some things I've learned that you should definitely consider if you own a home:
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Homeowner's insurance by itself typically does not include flood insurance, which you must buy separately.
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Flood insurance is quirky. For example, my agent tells me that flood insurance will cover a home only if one or more adjacent properties are also damaged. I assume this varies from policy to policy, and certainly if you don't live really close to anybody else.
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Flood insurance can be expensive. Policies can easily go into the thousands per year depending on where you live.
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In 2006, a third of all flood claims were submitted by those living in low- to moderate-risk areas.
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You may live in a flood zone and not realize it.
This last point was a shocker to me. I live in a high-risk flood zone. I never would have guessed it. And that brings me to a great resource you should check out if you want to look into flood insurance or determine if you live in a high-risk flood zone -- Flood Smart.
Flood Smart is a government-run Web site that provides a wealth of information about flooding risk, flood insurance, and even how to find an insurance agent. One feature I found particularly helpful is a tool that allows you to enter your address and determine what your flood risk is. That's how I learned we live in a high-risk area.
Finally, it's interesting to note that my insurance agent does not believe we need flood insurance. I guess he thinks the risk of a flood where we live is small, notwithstanding our flood-risk rating. But isn't that the very type of risk one should insure against?
Other articles of interest at The Dough Roller:
"Beginner's guide to asset allocation: Actively managed vs. index mutual funds"
"Yogi Berra's 7 secrets to building wealth"
"Hillary Clinton's health care plan -- A detailed analysis"
