Picking Flood Insurance
Buying flood insurance is complicated. If you are insuring an apartment house, for example, you might want to buy a policy that protects you from tenants’ lawsuits if their property is lost or they are injured in a flood. If you are buying flood insurance for your own residence, do you want to cover the replacement value of the house or to cover furnishings in the house? Do you want a policy with a deductible that would be applied to your losses, or one in which you pay more and are fully covered?
In making such decisions, look closely at your general property insurance policies and ask whether they already cover flood damage. Read all the fine print and buy additional riders to cover flood damage only if needed.
When comparing insurers ask how quickly claims are resolved. A company in robust financial health will pay claims more quickly than a company that is in trouble. One way to tell is to visit Insure.com’s Insurance Company Guide online at insure.com.
Be aware that some companies cater to specific regions of the country, such as Unisun, which serves homeowners from Virginia to Texas. Allstate, Mutual of Omaha, State Farm, and Travelers write policies nationally.
To Learn More
For more information about flood insurance, check out these resources:
The Federal Emergency Management Agency (FEMA) National Flood insurance Program: fema.gov/nfip/whonfip.shtmat
The Federal Emergency Management Agency (FEMA) FloodSmart in-formation page: floodsmart.gov/floodsmart/pages/index.jsp
Insure.com: insure.com
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