Flood insurance: Do you need it? How to get it

The recent floods in the Midwest have called attention to a major financial peril not covered by the typical homeowners insurance policy. Homeowners policies generally cover damage due to fire, wind, and other calamities, but not flooding. For that, you need a separate flood insurance policy.

Unfortunately, not everyone who needs a flood policy has one, sometimes due to outdated federal flood maps that underestimate the risk. In Cedar Rapids, Iowa, according to one news report, about 4,000 homes were damaged by recent flooding, but only 650 or so carried flood insurance.

Consumer Reports recently published an article on how flood insurance works, who needs it, what it costs, and how to buy it.

Comments

[Angie Klopp]

Please read every line of your insurance carefully and get questions answered in writing.

As a college student, I had just moved to Des Moines, IA less that two months prior to the "Flood Of The Century" in 1993. I wittnessed the devastation and I learned important home owner insurance lessons from neighbors, coworkers, and business associates.

Several years later, during a freak storm in IL, my home took on 3.5 feet of water in it's finished and "water proofed" basement. My insurance was wonderful (State Farm). Before 7am the next morning my agent had a cleaning crew at my door and what couldn't be saved was replaced with very little hassle.

The insurance company cancelled me not long after but I thought I knew what I was doing with flood/ sewage/ water/ mold insurance. I do not. READ IT ALL CAREFULLY.

I purchased and we moved into a new home in 2006. The owners said they'd not had water proplems but I made sure my insurance agent found me a policy that had water/ sewage backup. We did this over the phone. The agent told me I was covered for up to $5000.00 per occurance for back up. I questioned the amount specifically because of previous experience and was told that $5000.00 was for clean up only, that if there was damage, my replacement policy went into effect. I accepted her explanation, stopped in, signed, and filed the papers with my important documents.

My home took on 1.5 ft of water recently in the beginning of this storm cycle in the midwest. The water came in due to a prolonged period of power being down and my backup pump battery died eventually. Come to find out that there is misleading wording in my policy stating that $5000 is the cap per occurance INCLUDING replacement with water/sewage back up. My agent wasn't even aware of this, had mislead me by accident, but pretty much the answer is "too bad, so sad, this is what you've paid for."

Read every little detail and get anything AND everything in writing.

[kristie thomas]

regarding flood/wind insurance: I live in the florida keys, am building a solid poured concrete home/roof also concrete poured/high impact glass and 18' above flood level -WE still are forced to have flood insurance and wind insurance, which is costing us approximately $12,000.00. It is highway robbery!

[Cyndilou]

If an insurance gives you wrong information on your coverage you can file a claim under that agent's errors and ommissions coverage. Agents have specific duties when selling you coverage.