Tuesday, March 17, 2009

Flood insurace policies

Posted by SooYeon(Pia), Shin

According to the Federal Emergency Management Agency, there are many myths about flood insurance. One of the myths is that people who live in a high-risk flooding area cannot buy flood insurance. The truth is if the county participates in the insurance program, all of the county residents can purchase insurance freely. Another myth is that when it is already flooding, people cannot purchase a flood insurance policy. But, people can actually purchase the policy anytime though there is a 30-day waiting period after the first premium payment. The other myth is that federal disaster assistance will pay for damages when a home is flooded. However, the federal disaster assistance usually is “low-interest loan and may only be available to people in disaster areas designated by the president (Nance).”

You would be surprised to realize many things you think you have known are wrong when you are dealing with claims under flood insurance policies. Unlikely other insurance policies, the amount of litigation concerning claims under flood insurance policies was fairly low. However, began with Hurricane Katrina in 2005 through Hurricane Ike in 2008, the litigation involving claims under flood insurance policies were exploded. Failure to procure flood insurance was a central issue. Therefore, attorneys, insurers, insureds, and the courts have confronted issues about “unique and peculiar to flood insurance claims that had not been fully addressed in the past or which were not widely understood (Redfearn).” March 16th through 20th is Flood Safety Awareness week. So, including Missouri, the state emergency management agency is encouraging the residents to buy flood insurance policy because of melting snow and coming up of April showers.


1 comment:

  1. Nice Post ! Definitely, flood insurance is vital as most homeowners insurance policies do not cover flood damage. In fact, most standard homeowners, renters, dwelling, and condominium policies contain specific clauses that exclude and reject any type of flood losses. These days many lenders will require you to make certain that your property is fully protected before they will fund your loan, but existing owners should check with their insurance agents to determine whether their current policies cover them for flood damage.

    Florida Health Insurance