Why isn’t flood covered on my homeowner insurance policy?
Total Comments: 3
Posted: Wed Mar 31, 2010 03:53 pm Post Subject:
Because of the widespread devastation involved with a flood, covering flood losses are just cost prohibitive for insurance companies. Therefore, flood insurance is offered through the Federal Government through the National Flood Insurance Program.
Due to many area's of the country under a constant flood watch, flood insurance has been excluded from ALL HO policies for many, many years now. Flood Insurance is run by a federal program - National Flood Insurance Program, which is currently (as I write this) suspended due to Congress not passing a bill to extend it.
Posted: Wed Apr 07, 2010 06:40 pm Post Subject:
I'll simply add another point of view... it's excluded because that risk is not worked into the price of the policy. Most people don't need flood insurance.... so why charge people for it on every HO policy issued. Better to separate that coverage and offer "Flood Insurance" policies separately.
The problem I think is mainly that "floor" means (almost) any water seeping into the home... even just rain water.
Posted: Wed Mar 31, 2010 03:53 pm Post Subject:
Because of the widespread devastation involved with a flood, covering flood losses are just cost prohibitive for insurance companies. Therefore, flood insurance is offered through the Federal Government through the National Flood Insurance Program.
Posted: Wed Apr 07, 2010 02:34 pm Post Subject: Flood Insurance
Due to many area's of the country under a constant flood watch, flood insurance has been excluded from ALL HO policies for many, many years now. Flood Insurance is run by a federal program - National Flood Insurance Program, which is currently (as I write this) suspended due to Congress not passing a bill to extend it.
Posted: Wed Apr 07, 2010 06:40 pm Post Subject:
I'll simply add another point of view... it's excluded because that risk is not worked into the price of the policy. Most people don't need flood insurance.... so why charge people for it on every HO policy issued. Better to separate that coverage and offer "Flood Insurance" policies separately.
The problem I think is mainly that "floor" means (almost) any water seeping into the home... even just rain water.
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