THE BEST KIND OF FLOOD INSURANCE

Surprise! Your homeowners insurance does not cover any damage that results from flooding. Not exactly good news.

But it's better you know now, before finding out the hard way after a flash flooding incident.

It's not exactly gambling to pay for flood insurance you may never need.

Gambling is more comparable to the alternative: saving a few hundred dollars a year and assuming every year will be better than the last one. The smart thing to do is to buy flood insurance.

This is especially true in high-risk flood zones, though more and more water disasters are taking place outside predicated trouble spots.

But what kind of insurance should you choose? There are some 200 different companies that provide flood insurance along with traditional life, health and auto insurance policies. The average yearly cost of flood insurance for a typical house is less than $400.00, with some companies offering policies just over $100.00 per year for low risk policies.



There are three types of flood insurance policies available:
1. "General property" insurance, which covers apartments and businesses.
2. "Dwelling" insurance that covers homes.
3. "Residential condominium building association policy" is available for condominiums.

Not so fast, smart guy. Trying to purchase flood insurance the same day as a heavy storm rolls in just isn't going to happen. All policies have a 30-day waiting period.

So what kind of insurance should you purchase? One issue to look out for is how quickly are claims answered? Another question to consider: Is it a small insurance company or is it a national corporation? A small insurance company that is having financial difficulty might not be able to pay its claims, as a larger big name competitor would have no problem.

"What coverage is available?" would be another shrewd question to ask. Homeowners can insure their home up to $250,000 and its contents up to $100,000. If you're a renter you can cover your belongings for as much as $100,000.

Best of all? If you sign with a good insurance company you may also be entitled to a $1000.00 reimbursement for damage preventing costs. These might include renting storage spaces for your belongings, buying sandbags and lumber and renting pumps. No deductible applies.



What's the best type of insurance to buy? Any, as long as you're covered and the company has a reliable history of taking care of its clients. Flood insurance is an undervalued precaution that everyone should consider if you own your own home-or have any fear of your house being suddenly flooded with polluted water!