Insurance
by Amron Reisored
After Katria, most homeowners were shocked that their homeowner's insurance does not cover "flood".
Even if the President declares a disaster, the
"disaster assistance" is only $2.500 and eligibility for a low interest rate
loan.
Many people think that if they aren't near a river or the ocean that
they don't need flood insurance.If the source of the water is not the sky,
then it's flood water. This includes backed up water from street sewers and
drains, failed sump pumps, melted snow that flows into the basement, tidal
water, and flood water from all sources of surface water.In the basement are
costly utilities such as the furnace, hot water heater,oil tank, electrical
circuits,and often a washer & dryer. We are all in a flood zone, either zone
A,B,C,V or X.
The "good" zones are B,C and X. For $352 annual premium a
flood policy will cover a maximum $250,000 for a dwelling and $100,000 for
contents in zones B,C, or X. If you are in either zone A or V your mortgage
lender requires flood insurance. Always purchase flood insurance through an
insurance agent, not through the bank/ lender, as they act as a middle-man
and the premium can be much more than directly through an insurance
carrier. And if you're in a 1st floor or basement condo, you too need flood
insurance!