|
Flood insurance is not
very expensive, but most Americans have yet to purchase a policy. In
2000 the average flood insurance premium was $353 per year. You can
buy flood insurance in three forms: Dwelling, which covers most
homes; General Property for apartments and businesses; and
Residential Condominium Building Association Policies for
condominium owners.
If you live in a low to moderate risk zone, a discount may be
available as well.
Keep in mind that it takes 30 days for a flood insurance policy to
take effect, so rushing out to buy a plan right before expected
flooding is not a good idea. Be prepared ahead of time so that the
flood insurance you purchase will be available when you need it.
Flood insurance operates a little differently than other policies.
The federal government sets the rates, so choosing a company will
depend, not on price, but on the level of service being provided.
Ask questions during the decision-making process – how quickly are
claims resolved? Companies that aren't doing very well don't pay out
as quickly as institutions doing well in the industry.
Some companies provide insurance across the nation, but many do not.
Make sure you select a company that is known for good coverage in
your area.
Homeowners can insure their homes up to $250,000 and the contents
for up to $100,000. Renters also receive excellent coverage, but
only for personal contents, up to $100,000. Property owners have the
option of insuring their buildings and the contents up to $500,000.
Flood insurance coverage is not difficult to obtain, and can be
quite affordable. You will sleep easy knowing that your home and/or
possessions are protected in the event of a devastating flood. Flood
insurance is an investment in your peace of mind. |
