Fire Risk only?

by billtait » Tue May 04, 2010 09:50 am

If I lived in a flood risk area could I opt for a fire risk only policy or have an exception clause for flooding not to be included in the policy

Total Comments: 2

Posted: Tue May 04, 2010 10:38 am Post Subject:

Flood insurance is mandatory for some places. I'm sure you've heard about the National Flood insurance program. It's a good option. So, now you can think of fire insurance too!

Posted: Tue May 04, 2010 02:04 pm Post Subject:

I'm sure you've heard about the National Flood insurance program. It's a good option.



It is the ONLY option. Losses due to flood are excluded under all homeowner's policies.

That's the reason there were so many attempts to pin liability on (1) the faulty construction of the levees or (2) the winds of Hurricane Katrina several years ago. A very desperate attempt to collect on one's homeowner's policy. If the flooding was due to a construction defect, and not the massive rainfall, the government would have been exposed to all the damage claims. If instead the wind drove the water into people's homes, rather than the rising tide due to rainfall, then homeowner's policies would have paid for the damage.

Flood insurance is not "mandatory." But if you live in a declared flood zone and do not have a NFIP policy, you will be ineligible for FEMA assistance (if and when it arrives). Too many folks in New Orleans found that out the hard way, and hundreds of uninhabitable dwellings still standing in the Ninth Ward are a testament to that.

And, unfortunately, many people in Nashville are going to find out the same thing after the floodwaters from more than 13" of rain that inundated their beautiful city in the last few days have receded.

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