Strangely enough one of the most flood prone cities in the US has become Las Vegas, yep Las Vegas, right in the middle of the desert. So if folks in the middle of the desert are prone to flood why aren’t you?
Granted you are spending too much on insurance now why do I need it? It seems that when there is a flood it is usually catastrophic. That is the reason that flood insurance is part of FEMA, the federal government is actually the insurance company.
Many different companies offer flood under “their name” however once you get thought the front page (The declarations or DEC page) of the policy you will see the actual policy is that of the federal government the companies which you purchased the policy from is the administrators and handle issuing the policy and helping with claims but the bottom line the actual funds are coming from the tax payers.
In order for a community to be able to have flood insurance the community must apply to the federal government and become an “eligible” community. Once eligible a flood map is developed and areas are broken into Zones. The most flood prone areas are Zones “A un-numbered” – “A” numbered and “V” zones. “V” zones are the most flood prone since the “V” stand for Velocity that is wind driven water at a high wind velocity, coastal areas.
Anyone in one of these areas who takes out a mortgage backed by the federal bank must purchase flood insurance. The question comes when your property is in an “X” zone (formerly B or C zones). These areas have a probability of 1 in 100 to get flooded. Are you willing to toss the dice?
You shouldn’t. Flood insurance in these areas are considered “Preferred Policies” and anyone in these zones should be take advantage of the cheaper rates. Why take a chance? Even if you are in a V or A zone and you Flood Insurance seems outrageous there are a few things you can do.
First consider a very high deductible like we said usually when you have a flood the damage can be very much be catastrophic and your high deductible will seem like a “drop in the bucket” . Also consider self insuring your personal property and only insuring the dwelling itself.
Bottom line get a quote and council with your agent on tailoring the best coverage for your situation
Christopher Kazor, CIC
[ 2 comments ] ( 9 views ) | [ 0 trackbacks ] | permalink | related link |
( 3 / 317 )Back
Calendar
