What You Can Do About Insurance
By: Source: AARP Bulletin Date Posted: 2007-07-06 17:00:00-04:00
Don't go without flood insurance.
Property damage from flooding is not covered under standard homeowner insurance policies, yet millions of Americans go without such coverage each year.
"Flood is the number one natural disaster in the United States, costwise," according to Butch Kinerney, a spokesman for the Federal Emergency Management Agency, which runs the National Flood Insurance Program, through which flood policies are sold.
An average policy costs about $500 a year, he says; a beachfront home along the Atlantic coast could cost about $4,300 annually for $250,000 in coverage.
Most local agents sell flood insurance, but it's important to plan ahead—a policy does not become effective until 30 days after purchase.
To estimate your premium and find an agent, go to the NFIP at www.floodsmart.gov or call 1-800-427-2419.
Report problems, demand accountability and check rates.
File any complaint you have, in writing, with your state insurance agency and follow up to get a response. Contact your state insurance department for companies in your area that have sharply raised rates and cut back coverage in recent years. For local contact information, go to the National Association of Insurance Commissioners at http://www.naic.org/state_web_map.htm.
Additional Related Links
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